Cardinal Company is considering a five-year project that would require a $2,750,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 18%. The project would provide net operating income in each of five years as follows:

Sales $ 2,849,000 Variable expenses 1,122,000 Contribution margin 1,727,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 752,000 Depreciation 550,000 Total fixed expenses 1,302,000 Net operating income $ 425,000

What is the project profitability index for this project?

What is the projects internal rate of return?

What is the projects payback period?

What is the projects simple rate of return for each of the five years?