Question: Solution??? Cardinal Company is considering a project that would require a $2.875,000 investment in equipment with a useful life of five years. At the end

Solution???

Solution??? Cardinal Company is considering a
Cardinal Company is considering a project that would require a $2.875,000 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 $300,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: Sales $2,871, Bee Variable expenses 1, 018, 600 Contribution margin 1,853,600 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $753,030 Depreciation 515,060 Total fixed expenses 1, 268, 090 Net operating income $ 585,000 Required: What are the project's annual net cash Inflows? Annual net cash inflow

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