Question: please help me with the numbers in the problem! The Foundational 15 (Algo) (L012-1, L012-2, L012-3, L012-5, L012-6) (The following information applies to the questions


The Foundational 15 (Algo) (L012-1, L012-2, L012-3, L012-5, L012-6) (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years 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 costa $ 615,000 Depreciation 583,000 Total fixed expenses 1,198,000 Net operating income $ 422,000 Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-13 (Algo) 13. 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 project's actual net present value? (Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.) Net present value Foundational 12-14 (Algo) 14. 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 project's actual payback period? (Round your answer to 2 decimal places.) Payback period years 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 project's actual simple rate of return? (Round your answer to 2 decimal places.) Similar 1%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
