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 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,510,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Companys discount rate is 19%. The project would provide net operating income each year for five years as follows:

Sales			$	4,900,000
Variable expenses				2,200,000
Contribution margin				2,700,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	850,000
Depreciation		1,102,000
Total fixed expenses				1,952,000
Net operating income			$	748,000

Required:

1. What is the projects net present value?

2. What is the projects internal rate of return to the nearest whole percent?

3. What is the projects simple rate of return?