Cardinal Company is considering a five-year project that would require a $2,850,000 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

$

2,857,000

Variable expenses

1,011,000

Contribution margin

1,846,000

Fixed expenses:

Advertising, salaries, and other fixed out-of-pocket costs

$

799,000

Depreciation

570,000

Total fixed expenses

1,369,000

Net operating income

$

477,000

2-a.

What are the projects annual net cash inflows?

2-b.

What is the present value of the projects annual net cash inflows? (Round discount factor to 3 decimal places)

3.

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

6.	What is the projects internal rate of return? (Round your answer to nearest whole percent.)