Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his divisions 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 $4,450,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Companys discount rate is 20%. The project would provide net operating income each year for five years as follows: Sales $ 4,300,000 Variable expenses 1,960,000 Contribution margin 2,340,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $790,000 Depreciation 890,000 Total fixed expenses 1,680,000 Net operating income $ 660,000 Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the projects net present value? (Use the appropriate table to determine the discount factor(s).) 2. What is the projects simple rate of return? (Round percentage answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) 3-a. Would the company want Casey to pursue this investment opportunity? Yes No 3-b. Would Casey be inclined to pursue this investment opportunity? Yes No