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9N five in one please help Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's
9N five in one please help
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 budgetm project that would require a $4,300,000 investment in equipment with a useful life of five years and no salvage value, Pige Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: $4,200,000 1,920,000 2,280,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 780,000 860,000 1,640,000 $ 640,000 Click here to view Exhibit 12B-1 and Exhibit 128-2. 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? 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? Req 1 Reg 2 Reg 3 Req 4A Req 4B What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Reg 1 Reg 2 Req 3 Req 4A Req 4B What is the project's internal rate of return? (Round your answer to the nearest whole percentage, I.e. 0.123s considered as 12%.) Internal rate of return % Reg 1 Req 2 Req3 Req 4A Req 4B What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of return % Req 1 Req 2 Reg 3 Req 4A Req 4B Would the company want Casey to pursue this investment opportunity? Yes No Req 1 Req 2 Req3 Req 4A Reg 4B Would Casey be inclined to pursue this Investment opportunity? Yes Ono Step by Step Solution
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