Cardinal Company is considering a fiveyear project that would require a $ investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 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 outofpocket costs $
Depreciation
Total fixed expenses
Net operating income $
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using table.
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 What was the projects actual net present value? Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.
