CoursHeroTranscribedText: Cardinal Company is considering a project that would require a $2,815,000 investment in equipment...
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CoursHeroTranscribedText: Cardinal Company is considering a project that would require a $2,815,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: Sales $2, 863, 000 Variable expenses 1, 014, 000 Contribution margin 1, 849, 000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 781, 000 16:09 Depreciation 483, 000 Total fixed expenses 1, 264, 000 Net operating income $ 585, 000 Required: What are the project's annual net cash inflows? Annual net cash inflow
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