The Foundational $15($Algo$)[$LO$12-1,$ LO$12-2,$ LO$12-3,$ LO$12-5,$ LO$12-6]$

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

Cardinal Company is considering a five$-$year project that would require a $$2,890,000$ 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:

$\backslash$table$[[\backslash$table$[[$Sales$],[$Variable

expenses$]],,\backslash$table$[[$$$2,739,000$

$3.$ What Is the Present Value of the

project's annual net cash inflows? $4.$What is the project's net present value?

$5.$What is the Profitability Index for this project?

$6.$What Is this project's internal rate of return?

$7.$What is this project's payback period?

$8.$What is the Project's rate of return for each of the five years?

$9.$ If the company's discount rate was $14\%$ instead of $12\%,$ would you expect net present value to be highier, lower, or stay 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 highier, lower, or the same?

$15.$ Assume a postaudit showed that all estimates $($including total sales$)$ were exactly correct except for the variable expense ratio which actually turned out to be $50\%.$ What was the project's annual simple rate of return?