Cardinal Company is considering a fiveyear project that would require a $ investment in equipment with a useful life of five years and no salvage value. The companys discount rate is The project would provide net operating income in each of five years as follows:

Sales $

Variable expenses

Contribution margin

Fixed expenses:

Advertising, salaries, and other fixed outofpocket costs $

Depreciation

Total fixed expenses

Net operating income $

Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using table.

Foundational Algo

What is the projects simple rate of return for each of the five years?