Answer Happy

Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin $ 2,861,000 1,101,000 1,760,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 705,000 574,000 Depreciation Total fixed expenses 1,279,000 Net operating income $ 481,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
2. What are the project's annual net cash inflows? Annual net cash inflow
3. What is the present value of the project's annual net cash inflows? amount.) Present value
4. What is the project's net present value? Net present value
5. What is the profitability index for this project? Profitability index
7. What is the project's payback period? (Round your Project's payback period years
8. What is the project's simple rate of return for each of the five years? Simple rate of return %