Cardinal Company is considering a project that would require a $2,915,000 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 $300,000. The companys discount rate is 12%. The project would provide net operating income each year as follows:

Sales

$

2,746,000

Variable expenses

1,126,000

Contribution margin

1,620,000

Fixed expenses:

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

$

615,000

Depreciation

523,000

Total fixed expenses

1,138,000

Net operating income

$

482,000

8.

What is the projects simple rate of return for each of the five years? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.))

12.

If the equipments salvage value was $500,000 instead of $300,000, what would be the projects simple rate of return? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.))

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 50%. What was the projects actual simple rate of return? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.))