of 5 :56 Cardinal Company is considering a five-year project requiring a $2,870,000 investment in equipment...

 

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of 5 :56 Cardinal Company is considering a five-year project requiring 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 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 2,861,000 1,101,000 1,760,000 $ 705,000 574,000 1,279,000 $ 481,000 Use the PV Factor tables in Questions 1 and 2. Foundational 14-6 (Algo) 6. What is the project's internal rate of return? Project's internal rate of return % of 5 :56 Cardinal Company is considering a five-year project requiring 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 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 2,861,000 1,101,000 1,760,000 $ 705,000 574,000 1,279,000 $ 481,000 Use the PV Factor tables in Questions 1 and 2. Foundational 14-6 (Algo) 6. What is the project's internal rate of return? Project's internal rate of return %