1.Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual payback period? (Round your answer to 2 decimal places.)

2.Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual simple rate of return? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.))

Cardinal Company is considering a project that would require a $2,782,000 Investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $200,000. The company's discount rate is 18%. The project would provide net operating Income each year as follows: Sal Varlable expenses $2,873,000 1,019,000 1,854,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreclation $754,000 516,400 Total fixed expenses 1,270,400 Net operating Income $583,600