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Cardinal Company is considering a project that would require a $2,805.000 investment in equipment with a useful life of five years. At the end of
Cardinal Company is considering a project that would require a $2,805.000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000 The company's discount rate is 14%. The project would provide net operating Income each year as follows: $2,741,000 1125,000 1,616,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 642,000 481 000 1 123,000 $ 493,000 Required: What are the project's annual net cash inflows? Annual net cash inflow
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