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

Foundational 7-4 (Algo)

4a. What is the projects net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.)

4b. What is the project profitability index for this project? (Round your answer to 2 decimal places.)