Question: Please help with the answers ASAP . Need to explain in an hour. Thanks. Cardinal Company is considering a project that would require a $2,782,000
Please help with the answers ASAP . Need to explain in an hour. Thanks.
Cardinal Company is considering a project that would require a $2,782,000 investment in equipmen 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 18%. The project would provide net operating income each year as follows $2,873,000 119,00 1,854,800 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 754,000 516,400 1,270,400 $ 583,660 Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: What is the project's net present value? (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) Net present value
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