!Required InformationThe Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6][The following information applies to the questions displayed below.]Cardinal Company is considering a five-year project that would require a $2.765,000 investment in equipment with auseful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operatingincome in each of five years as follows:SalesVariable expenses$ 2,851,0001,150,000Contribution marginFixed expenses:Advertising, salaries, and other fixed out-of-pocket costsDepreciation$ 670,000553,0001,701,000Total fixed expensesNet operating income1,223,000$ 478,000Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.Foundational 12-3 (Algo)3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.)Present value

USING TABLE:The discount factors are approximately 14% interest rate in the PVIF table.Year 1:…

Answered: ! Required Information The Foundational…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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Manji
! Required Information The Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,955,000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating Income in each of five years as follows: Sales Variable expenses Contribution margin $ 2,865,000 1,015,000 1,850,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs Depreciation $ 750,000 591,000 Total fixed expenses 1,341,000 $ 509,000 Net operating incone Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-14 (Algo) 14. 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 45%. What…
Haresh
Required Information The Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,955,000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating Income In each of five years as follows: Sales Variable expenses Contribution margin $ 2,865,000 1,015,000 1,850,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs Depreciation $ 750,000 591,000 Total fixed expenses 1,341,000 $ 509,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-14 (Algo) 14. 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 45%. What…
Alpesh
Bhupatbhai
The Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] [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: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- $ 641,000 578,000 of-pocket costs Depreciation $ 2,739,000 1,100,000 1,639,000 Total fixed expenses Net operating income 1,219,000 $ 420,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Required information The Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12- 6] [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,850,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $ 2,857,000 1,011,000 1,846,000 $ 799,000 570,000 1,369,000 $ 477,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-13 (Algo) 13. 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 45%. What…
Gadubhai
i need help with these two questions. can you show the work for them please .
i need help with these two questions! can you show the work please
Subject : Accounting

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