15 Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,500,000 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 $ 2,853,000 1,200,000 1,653,000 Contribution margin Fixed expenses Advertising, salaries, and other fixed out- of-pocket costs $ 790,000 Depreciation 500,000 Total fixed expenses 1,290,000 $363,000 fiet operating income Click here to view Exhibit 128:1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table 11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's not present value to be higher, lower, or the same? O Higher O Lower O Same Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,500,000 investment if 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 $ 2,853,000 1,200,000 1,653,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 790,000 500,000 Depreciation Total fixed expenses 1,290,000 $363,000 Net operating income Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's payback period to be higher, lower, or the same? O Higher O Lower Same of 15 10:47 Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2.500.000 wistment 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 $2,853,000 1,200,000 1,653,000 Fixed expenses Advertising, salaries, and other fixed out- of-pocket costs $ 790,000 Depreciation 500,000 Total fixed expenses 1,290,000 $363,000 fiet operating income Click here to view Exhibit 1281 and Exhibit 120.2. to determine the appropriate discount factors) using table 9 If the company's discount rate was 14% instead of 12%, would you expect the project's net present value to be higher, lower, or the same? O Higher Lower O Same 17 Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2.500.000 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 op income in each of five years as follows: Sales Variable expenses $2,853,000 1,200,000 1,653,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 790,000 Depreciation 500,000 Total fixed expenses 1,290,000 $.363,000 Net operating Income Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(i) using table 2. What are the project's annual net cash inflows? Annan net cash inflow $ 3,110,922
