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 o the last hree years. Casey is consider ng a capital budgeting project that would require a S6, 100.000 investment in equipment with a usefu ife o 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: Sales Variable expenses Contribution margin Fixed expenses: S 5.400,000 2,400,00D 3,000,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $900,000 1,220,000 Total fixed expenses Net operating income 2.120,000 $ 880,000 Click here to view Exhibit 88-1 and Exhibit 88-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the project's net present value? (Round discount factor(s) to 3 decimal places.) value 2. What is the project's intemal rate of return to the nearest whole percent? I rate of return 3, what is the project's simple rate of return? (Round percentage answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) rate of return