![Required information<br>[The following information applies to the questions displayed below.]<br>Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a<br>useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating<br>income in each of five years as follows:<br>$ 2,735,000<br>1,000,000<br>1,735,000<br>Sales<br>Variable expenses<br>Contribution margin<br>Fixed expenses:<br>Advertising, salaries, and other fixed out-<br>of-pocket costs<br>Depreciation<br>Total fixed expenses<br>$ 735,000<br>595,000<br>1,330,000<br>$ 405,000<br>Net operating income<br>Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.<br>4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.)<br>Net present value<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_sxz0-kcvawnny.jpeg)
Extracted text: Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,975,000 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: $ 2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs Depreciation Total fixed expenses $ 735,000 595,000 1,330,000 $ 405,000 Net operating income Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Net present value
![Required information<br>[The following information applies to the questions displayed below.]<br>Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a<br>useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating<br>income in each of five years as follows:<br>$ 2,735,000<br>1,000,000<br>1,735,000<br>Sales<br>Variable expenses<br>Contribution margin<br>Fixed expenses:<br>Advertising, salaries, and other fixed out-<br>of-pocket costs<br>Depreciation<br>Total fixed expenses<br>$ 735,000<br>595,000<br>1,330,000<br>$ 405,000<br>Net operating income<br>Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.<br>5. What is the profitability index for this project? (Round your answer to 2 decimal places.)<br>Profitability index<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_4idsxz0-hp0b3hwc.jpeg)
Extracted text: Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,975,000 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: $ 2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs Depreciation Total fixed expenses $ 735,000 595,000 1,330,000 $ 405,000 Net operating income Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability index