Question: Cardinal Company is considering a project that would require a $2.810 000 investment in equipment with a useful life of five years. At the end



Cardinal Company is considering a project that would require a $2.810 000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $500,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: Sales Variable expenses $ 2,847,000 1.121.000 1.726.000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $782.000 462,000 1,244,000 Total fixed expenses Net operating income $ 482 000 Required: What are the project's annual net cash inflows? Annual net cash inflow wardinal company is considering a project that would require a ALIQUUvestment in equipment with useful life of five years. At the end of five years, the project would temate and the equipment would be Bo Yos Salvage value of $400,000. The company's discount rate is 14%. The project would provide net operating income each year as follows Sales Vanable expenses $ 2.875,000 1.124.000 1 751.000 Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 721,000 478,400 Total fixed expenses 1.199 400 Net operating income $ 551 600 Click here to view Exhibit 10B-2. to determine the appropriate discount factoris) using table. Required: what is the present value of the project's annual net cash inflows? (Round discount factors decimal places and final answer to the nearest dollar amount.) Presen cardinal Company is considering a project that would require a 52,890.000 investment equipment with a Useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $200,000. The company's discount rate is 12%. The project would provide nel operating income each year as follows: Sales Variable expenses $2.739,000 1.100.000 1639.000 Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation $641,000 538,000 Total fixed expenses 1.179.000 Net operating income $ 460,000 Click here to view Exhibit 108.1, to determine the appropriate discount factor(s) using table Required: What is the present Value of the equipment's salvage value at the end of five years (Round discount Lactos decimal places and final answer to the nearest dollar amount Cardinal company is considenng a project that would require a $2865.000 investment in equipment with useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300.000. The company's discount rate is 12%. The project would provide her operating income each year as follows: Sales Variable expenses $ 2,869,000 1.126.000 1.743.000 Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 709 000 513 000 Total fixed expenses 1 222.000 Net operating income $ 521.000 Click here to view Exhibit 108-1 and Exhibit 108-2. to determine the appropriate discount factor(s) using tables Required: What is the project's net present Value (Round discount factors to 3 decimal places intermediate and final answers to the nearest dollar amount.) Net present value
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