1. Cardinal Company is considering a five-year project requiring a $2,850,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,857,000 Variable expenses 1,011,000 Contribution margin 1,846,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 799,000- Depreciation 570,000 Total fixed expenses 1,369,000 Net operating income $477,000 e. What is the project's internal rate of return? 4 points Your answer: 2.722 incorrect; almost there, but there is one more step to get a %.