Cardinal Company is considering a five-year project that would require a $2,845,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 12%. The project would provide net operating income in each of five years as follows:

Sales			$	2,869,000
Variable expenses				1,126,000
Contribution margin				1,743,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	709,000
Depreciation		569,000
Total fixed expenses				1,278,000
Net operating income			$	465,000

a.What are the projects annual net cash inflows?

b.What is the present value of the projects annual net cash inflows?

c.What is the projects net present value?

d. What is the project profitability index for this project?

e.What is the projects internal rate of return?