Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $ 2,855,000 1,010,000 1,845,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 798,000 562,400 1,360,400 484,600 $ Click here to view Exhibit 123.1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 14. 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 project's actual payback period? (Round your answer to 2 decimal places.) Payback period years EXHIBIT 12B-1 Present Value of $1: 17 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 EXHIBIT 128-2 Present Value of an Annuity of S1 in Arrears; 4 1 - utol Periods 4% 1 0.962 2 1886 3 2.775 4 3.630 5 4.452 5% 6% 0.952 0.943 1.859 1.833 2.723 2673 3.546 3.465 4.329 4.212 7% 0.935 1.808 2.624 3.387 4.100 8% 0.926 1.783 2.577 3.312 3.993 9% 10% 11% 12% 13% 14% 15% 16% 17% 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 1759 1736 1.713 1.690 1.668 1647 1626 1.605 1585 2.531 2.487 2444 2.402 2361 2.322 2283 2246 2210 3.240 3.170 3102 3.037 2.974 2.914 2.855 2.798 2743 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199