The Foundational $15($Algo$)[$LO$14-1,$ LO$14-2,$ LO$14-3,$ LO$14-5,$ LO$14-6]$

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$[$The following information applies to the questions displayed below.$]$

Cardinal Company is considering a five$-$year project requiring a $$2,810,000$ investment in equipment with a useful life of five years and no salvage value. The company$$s discount rate is $16\%.$ The project would provide net operating income in each of five years as follows:

Sales $ $2,847,000$

Variable expenses $1,121,000$

Contribution margin $1,726,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $782,000$

Depreciation $562,000$

Total fixed expenses $1,344,000$

Net operating income $ $382,000$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Foundational $14-6($Algo$)$

$6.$ What is the project$$s internal rate of return?

$7.$ What is the project$$s payback period?

Note: Round your answer to $2$ decimal places.

$8.$ What is the project$$s simple rate of return for each of the five years?

Note: Round your answer to $2$ decimal places.

$9.$ If the company$$s discount rate was $18\%$ instead of $16\%,$ would you expect the project's net present value to be higher, lower, or the same?

$10.$ If the equipment had a salvage value of $$300,000$ at the end of five years, would you expect the project$$s payback period to be higher, lower, or the same?

$11.$ If the equipment had a salvage value of $$300,000$ at the end of five years, would you expect the project's net present value to be higher, lower, or the same?

$12.$ If the equipment had a salvage value of $$300,000$ at the end of five years, would you expect the project$$s simple rate of return to be higher, lower, or the same?

$13.$ Assume a postaudit showed all estimates $($including total sales$)$ were exactly correct except for the variable expense ratio, which actually turned out to be $45\%.$ What was the project$$s actual net present value?

Note: Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.

$14.$ Assume a postaudit showed all estimates $($including total sales$)$ were exactly correct except for the variable expense ratio, which actually turned out to be $45\%.$ What was the project$$s actual payback period?

Note: Round your answer to $2$ decimal places.

$15.$ Assume a postaudit showed all estimates $($including total sales$)$ were exactly correct except for the variable expense ratio, which actually turned out to be $45\%.$ What was the project$$s actual simple rate of return?

Note: Round your answer to $2$ decimal places.