Casey Nelson Is a divisional manager for Pigeon Company. HIs annual pay ralses 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 requiring a

$$4,450,000$ 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:

Click here to view Exhibit $14$B$-1$ and Exhiblt $14$B$-2,$ to determine the approprlate discount factor$($s$)$ using tables.

Required:

What is the project's net present value?

What is the project's Internal rate of return to the nearest whole percent?

What is the project's simple rate of return?

$4-$a$.$ Would the company want Casey to pursue this Investment opportunity?

$4-$b$.$ Would Casey be Inclined to pursue this Investment opportunity?

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