1 Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: $5,400,000 2,400, eee 3,000,000 ok Sales Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 900,000 1,220,000 ces 2,120, eee $ 880,000 Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using tables Required: 1. What is the project's net present value? 2. What is the project's internal rate of return to the nearest whole percent? 3. What is the project's simple rate of return? 4-a. Would the company want Casey to pursue this investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B - other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 900,000 1,220,000 2,120,000 $ 880,000 125 points Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tab eBook Required: 1. What is the project's net present value? 2. What is the project's internal rate of return to the nearest whole percent? 3. What is the project's simple rate of return? 4-a. Would the company want Casey to pursue this investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Print References Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Req 4B What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Reg Req2 > Net operating income Click here to view Exhibit 13-1 and Exhibit 13B-2, to determine the a Book Required: 1. What is the project's net present value? 2. What is the project's internal rate of return to the nearest whole pe 3. What is the project's simple rate of return? 4-a. Would the company want Casey to pursue this investment oppor 4-6. Would Casey be inclined to pursue this investment opportunity? Print Ferences Complete this question by entering your answers in the tabs be Reg 1 Req2h Req 3 Req 4A Reg 4B What is the project's internal rate of return? (Round your answer to the considered as 12%.) Internal rate of return %