Question: Cardinal Company is considering a five-year project that would require a $2,810.000 investment in equipment with a useful life of five years and no salvage




Cardinal Company is considering a five-year project that would require a $2,810.000 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: $ 2,047.000 1.121.000 1,726.000 Salon Variable expense Contribution margin Fixed expect Advertising, alaries, and other fixed out-of-pocket costs Depreciation Total Fixed expenses Not operating in $ 762.000 563.000 5 312,000 Click here to view Exhibit 1281 and Exhibit 128-2. to determine the appropriate discount factoris) using table Foundational 12-1 (Algo) Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Sales Variable expenses Advertising, sales, and other fred out of pocket couts expenses Depreciation expense The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,810,000 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: $ 2,847,000 1,121,000 1,726,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Het operating income $ 782,000 562,000 1,344,000 $ 382,000 Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-5 (Alg 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Proinde 1 16 Cardinal Company is considering a five-year project that would require a $2,810,000 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: $ 2,847,000 1,121,000 1,726,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 782,000 562,000 1,344,000 $ 382,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. Foundational 12-13 (Algo) 13. 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 net present value? (Negative amount should be indicated by a minus sign. Round Intermediate calculations and final answer to the nearest whole dollar amount.) Nel present value Cardinal Company is considering a five-year project that would require a $2,810,000 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: $ 2,847,000 1.121,000 1,726,000 Sales Variable expenses Contribution margin Pixed expenses Advertising. salaries, and other fixed out-of-pocket costs Depreciation Total tixed expenses Net operating income $ 782,000 562,000 1,344,000 $ 382,000 Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-15 (Algo) 15. 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 simple rate of return? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Simple rate ofrer 7.94% Cardinal Company is considering a five-year project that would require a $2,810,000 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: $ 2,847,000 1.121,000 1,726,000 Sales Variable expenses Contribution margin Pixed expenses Advertising. salaries, and other fixed out-of-pocket costs Depreciation Total tixed expenses Net operating income $ 782,000 562,000 1,344,000 $ 382,000 Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-15 (Algo) 15. 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 simple rate of return? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Simple rate ofrer 7.94%
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