Cardinal Company is considering a five-year project that would require a $2,810,000 investment in equipment with a usefu

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Cardinal Company is considering a five-year project that wouldrequire a $2,810,000 investment in equipment with a useful life offive years and no salvage value. The company’s discount rate is16%. The project would provide net operating income in each of fiveyears as follows:
Click here to view Exhibit 7B-1 and Exhibit 7B-2,to determine the appropriate discount factor(s) using table.
rev: 05_11_2019_QC_CS-168512
14. Assume a postaudit showed that all estimates (includingtotal sales) were exactly correct except for the variable expenseratio, which actually turned out to be 45%. What was the project’sactual payback period?
- Assume a postaudit showed that all estimates (including totalsales) were exactly correct except for the variable expense ratio,which actually turned out to be 45%. What was the project’s actualsimple rate of return?