Question: Please help with the answers ASAP . Need to explain in an hour. Thanks. Cardinal Company is considering a project that would require a $2.915,000
Please help with the answers ASAP . Need to explain in an hour. Thanks.
Cardinal Company is considering a project that would require a $2.915,000 investment in equipment with a useful We 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 net operating income each year as follows: $2,746,000 1,126,000 1,628, eee Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 615,000 523,000 1,138,899 $ 482,600 Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: What is the present value of the project's annual net cash inflows? (Round discount foctor(s) to 3 decimal places and final answer to the nearest dollar amount.) Present value
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