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urgent help needed 12 Cardinal Company is considering a project that would require a $2,500,000 investment in equipment weh a useful life of five years.
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12 Cardinal Company is considering a project that would require a $2,500,000 investment in equipment weh 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 $200,000. The company's discount rate is 12%. The project would provide net operating income each year as follows 25 point $2,053,000 1,200,000 1,653,000 Sales Variable mpenses Contribution margin Fixed expenses Advertising. salaries, and other fixed out-of-pocket costs Depreciation Total Fixed expenses Net operating Income 3 02:49 $70,000 160,000 1.0.0 $43.0 Click here to view Exhib 10.1 and Exhib 10.2. to determine the appropriate discount factors using tables Required: What is the present value of the equipment's salvage value at the end of five years? (Round discount factors to 3 decimal places and final answer to the nearest dollar amount.) Postale EXHIBIT 10-1 Present Value of $1 P (177) Teriod 104 164 204 22 218 26% ROK 101 1 2 3 1 0.92 0952 0943 09860909 0893 0877 0.862 0.547 083 0830 0506 0794 07810769 0714 0.925 0.907 0.890 0.837 0.526 0.797 0.769 0.743 0.7180.61 0.672 0.6500630 0.610 0,392 0.510 0889 0164 140 0794 0751 0712 0673 0641 060399 0.531 03 05000477 0455 0364 0.835 0523 0.792 0.735 066 0.630 0.592 0.552 6.316 0452 0451 0.423 0.397 0.373 0.150 0.250 003 0104 068108 056 05190476 0451 0202 030 0410315 0291 0200156 0.790 0.716 0.705 06:30 0.361 0.507 0.156 0.410 0.370 0.335 0.303 0.375 0.250 0.337 0207 0.133 0760 071 D66038 0313 0452 4000354 0314 021 02200222 0.19 0173 0199 DOO 0.731 0077 007 0.510 0.467 0.001 0.351 0.305 0.266 023 0201 0.179 0.157 0.19 0.123 000 5 6 2 9 9 0.703064502925000-434 361 O 021 022 010167 014 012 010 001400 0.676 0614 0.556 0.163 0.336 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0099 000 0073 0035 10 11 010030377 02 00 0237 19 016 015 012 664 66 005600 12 FI 11 15 ZO 1900 16 17 15 1 20 0.625 0.357 0.17 0.397 0.319 0.257 0.200 0.163 0.137 0.112 0.092 0.076 0.002 0.052 0010 0010 03 04 000018 0 14501090151 ODGE 013 0.377 0.305 0.10 0.30 0263 0.203 0.160 0.125 0.09 0075 0.00 0.00 0.00 002 0.025 0.009 0355 04 0515 DO10 100 DO 00 OD0S 00.20 1000 0.34 0.8 0.91 0.292 0.218 0,163 0.125 0.093 0071 0.054 0.002 0.002 0.025 0.019 005 0.005 033043600001146 to GOD 0 0045 040 01512 0:4910416 0.350 0.250 0.50 0.130 0.005 0.0690051 0.035 0.025 000 0016 0.013 0.000 0.00 03350301001640116 000 0000 064 DO 00000000000 DO 0456 0.32 0.3120215 0.19 0.101 0.073 0.001 ? 006 0019 011 010 000 0000001 04 05 04 0199 0115 00054 0043 0.031 003200100110.000 0.00 0.00 0.00 0222 0.312 0271 01 0.123 0.0639056 0035 AM 0013 0013 000 000 0004 0000001 05 01320100112 04 000 0002 0013 000 000 000 0003 0.002 3.990030034701580103 06 09 005 019 01 00000000000002 05093014100000000000000000300030000001 036101110301330054 00530691001001000004 door 0200001350000000000000000000000000000 0355 000 000 000 000 000 DO 0000 201611501000000000000000 D1000000 de son OOTD 22 33 24 26 10 w EXHIBIT 10-2 Present Value of an Annuity of 51 Pero SK 5 2 SSI 30 OS 1.00 0.963 2560 0943 2 1.386 1859 1833 3 2.775 2.723 2673 4 36.30 3566 3.165 3 1212 4330 5076 . 3 4917 333 3.756 6002 6733 3 6863 6210 1.435 2.100 10 1111 7.722 6103 7:30 7507 11 760 12 9333 562 354 10 2073 26 0.925 0.909 0.893OTT 0.362 0347 00320006 0.794 0731 0.769 0714 17.3 1736 1690 1647 605 1.506 1531 1292 371 392 3611224 2577 2.457 2.40222222246 2174 2105 200 1951 1923 156 1516 1389 3.1103037 2014 2 200 230 229 2304 2320 2341 2.166 1.619 3.993 37913605 34333.274 3127 3001 2.5 2.745 635 2532 2036 2035 +623 +355 4.111 359 3635393 33363.1673020255 2.759 260 2.165 5.200 456 4564 4.15 40303512360 343532410320372302 2363 5.140 33354965 1699 134075 37 39 410 295 2 37503223916 460 4.904030756 750633661154 3.019 2370 6710 618 505052164321091101_3933363465 336 302 344 7.19 4339383.433 3629136 237 403537763333333435 7336 6514619 36003.1993.606 387 30 2136 7904 7.30 604 3343344010433342939123656 1427 2468 24 7357.66 6005466500846114160230955359 339 347 3.599 2606 511 614735733094613 4315400377934333262414 SI 591 6.265 366 312 3706333.71 3.50 2.419 91227130 6373 374 372 4773095771 3316 3299 93 2017250 6467533273 2930003756250394 2.500 5.550553164544 44 007 793 90 911 1516 23953504303503162001 100 30 SET 3035341335519 10:30 7645 10.03.2010 2009 10 102 VS 1754 1061 097 491 4147 10110 13 000 HO 14 10.563 995 R$90 N 15 11.15 11.02 00 9712 10106 10.417 10 13 13 10:3030 11274 11600 12005 13460 12.10 12659 19 MEC 11.15 100 20 13.500 1140 11 121 H 125 1 12:33 1550 12 13 10 1300 06 OCCO 100 532154151.500 11 23.500 R1713 133 11 Step by Step Solution
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