Cardinal Company is considering a fiveyear project requiring 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.

Required information

If the equipment had a salvage value of $ at the end of five years, would you expect the projects simple rate of return to be higher, lower, or the same?

Assume a postaudit showed all estimates including total sales were exactly correct except for the variable expense ratio, which actually turned out to be What was the projects actual net present value?

Assume a postaudit showed all estimates including total sales were exactly correct except for the variable expense ratio, which actually turned out to be What was the projects actual payback period?

Assume a postaudit showed all estimates including total sales were exactly correct except for the variable expense ratio, which actually turned out to be What was the projects actual simple rate of return?