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 22% each of the last three years. Casey is considering a capital budgeting project that would require a $3,900,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 18% The project would provide net operating income each year for five years as follows: Sales Variable expenses $3,800,000 1,760,000 2,040,000 Contribution margin- Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $740,000 Depreciation 780,000 Total fixed expenses 1,520,000 $520,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-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 to the nearest whole percent? 3. 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? Complete this question by entering your answers in the tabs below. Req 1 Reg 21 Req 31 Reg 4A Reg 48 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value 1 Req 2>