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 $2,805,000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. 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 $ 642,000 561,000 $ 2,741,000 1,125,000 1,616,000 Depreciation Total fixed expenses Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Present value 1,203,000 $ 413,000 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.)
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 $2,805,000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. 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 $ 642,000 561,000 $ 2,741,000 1,125,000 1,616,000 Depreciation Total fixed expenses Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Present value 1,203,000 $ 413,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i need help with these two questions. can you show the work for them please .
![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 $2,805,000 Investment in equipment with a
useful life of five years and no salvage value. The company's discount rate is 14%. 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
Foundational 12-3 (Algo)
$ 642,000
561,000
$ 2,741,000
1,125,000
1,616,000
Depreciation
Total fixed expenses
Net operating income
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Present value
1,203,000
$ 413,000
Saved
3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.)
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Nex](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F000ebe7d-18bd-48ed-9e93-76a69cfcf470%2F1f98d775-6bf5-4d97-8db3-ff76a79cc911%2Flmcekwl_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $2,805,000 Investment in equipment with a
useful life of five years and no salvage value. The company's discount rate is 14%. 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
Foundational 12-3 (Algo)
$ 642,000
561,000
$ 2,741,000
1,125,000
1,616,000
Depreciation
Total fixed expenses
Net operating income
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Present value
1,203,000
$ 413,000
Saved
3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.)
< Prev
3 4
5
15 of 15
MacBook Pro
Nex
![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 $2,805,000 investment in equipment with a
useful life of five years and no salvage value. The company's discount rate is 14%. 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
Foundational 12-2 (Algo)
2. What are the project's annual net cash inflows?
$ 642,000
561,000
Depreciation
Total fixed expenses
Net operating income
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Annual net cash inflow
$ 2,741,000
1,125,000
1,616,000
1,203,000
$ 413,000
< Prev
Saved
2
3
S
4
***
15
of 15
#
Nex](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F000ebe7d-18bd-48ed-9e93-76a69cfcf470%2F1f98d775-6bf5-4d97-8db3-ff76a79cc911%2F4qeilru_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $2,805,000 investment in equipment with a
useful life of five years and no salvage value. The company's discount rate is 14%. 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
Foundational 12-2 (Algo)
2. What are the project's annual net cash inflows?
$ 642,000
561,000
Depreciation
Total fixed expenses
Net operating income
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Annual net cash inflow
$ 2,741,000
1,125,000
1,616,000
1,203,000
$ 413,000
< Prev
Saved
2
3
S
4
***
15
of 15
#
Nex
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