Question: plesse help Cardinal Company is considering a five-year project that would require a $2,500,000 investment in equipment with a useful life of five years and
Cardinal Company is considering a five-year project that would require a $2,500,000 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 Variable expenses Contribution margin $ 2,853,000 1,200,000 1,653,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 790,000 Depreciation 500,000 Total fixed expenses 1,290,000 $363,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table. Foundational 12-6 (Algo) 6. What is the project's internal rate of return? Project's internal rate of return 0 %
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