Cardinal Company is considering a project that would require a $2,792,000 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 $400,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: Sales 2,875,000 $ Variable expenses 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 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period B. Required information 1.00 points 8. What is the project's simple rate of retum for each of the five years? (Round your answer to 2 decimal places. (1.e 0.1234 should be entered as 12.34.)) Simple rate of return Required information value 1.00 points 9. If the company's discount rate was 16% instead of 14%, would you expect the project's net present value to be higher than, lower than, or the same? Lower Same Higher value: 1.00 points Required information 10. the equipment's salvage value was $600,000 instead of $400,000, would you expect the project's payback period to be higher than, lower than, or the same? OOO Higher Same Lower