Cardinal Company is considering a five-year project that would require a $2,765,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 14%. The project would provide net operating income in each of five years as follows:

Sales		$ 2,851,000
Variable expenses		1,150,000
Contribution margin		1,701,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$ 670,000
Depreciation	553,000
Total fixed expenses		1,223,000
Net operating income		$ 478,000

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

6. What is the projects internal rate of return?

7. What is the projects payback period? (Round your answer to 2 decimal places.)

8. What is the projects simple rate of return for each of the five years? (Round your answer to 2 decimal places.)