Cardinal company is considering a project that would require a $2,890,000 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 $200,000. the company’s discount rate is 12%. the project would provide net operating income each year as follows:

sales $ 2,739,000
variable expenses 1,100,000
contribution margin 1,639,000
fixed expenses:
advertising, salaries, and other
fixed out-of-pocket costs $ 641,000
depreciation 538,000
total fixed expenses 1,179,000
net operating income $ 460,000
12.
if the equipment’s salvage value was $400,000 instead of $200,000, what would be the project’s simple rate of return? (round your answer to 2 decimal places. (i. e 0.1234 should be entered as 12.

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 50%. what was the project’s actual net present value? (negative amount should be indicated by a minus sign. use the appropriate table to determine the discount factor(s), other intermediate calculations and final answer to the nearest whole dollar.)

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 50%. what was the project’s actual payback period? (round your answer to 2 decimal places.)

15.
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 50%. what was the project’s actual simple rate of return? (round your answer to 2 decimal places. (i. e 0.1234 should be entered as 12.