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 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,380,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 19%. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $ 4,800,000 2,160,000 2,640,000 $840,000 1,076,000 1,916,000 $ 724,000 Net operating income Click here to view Exhibit 128-1 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 Req 2 Req 3 Req 4A Req 48 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Reg 1 Req 2 > Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return of investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting project that w require a $5,380,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount ra 19%. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses: out-of-pocket costs Depreciation $ 4,800,000 2,160,000 2,640,000 Advertising, salaries, and other fixed $840,000 1,076,000 Total fixed expenses 1,916,000 $ 724,000 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 Req 2 Req 3 Req 4A Req 48 What is the project's internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.) Internal rate of return % < Req 1 Req 3 > Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting project that require a $5,380,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discoun 19%, The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $ 4,800,000 2,160,000 2,640,000 $840,000 1,076,000 1,916,000 $ 724,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 128-2, 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 Req 2 Req 3 Req 4A Req 48 What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of return % Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's ret investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting project t require a $5,380,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's disco 19%. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses $ 4,800,000 2,160,000 2,640,000 $840,000 1,076,000 1,916,000 $ 724,000 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 Req 2 Req 3 Req 4A Req 481 Would the company want Casey to pursue this investment opportunity? Yes ONO Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his div investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting require a $5,380,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Compa 19%. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses: out-of-pocket costs. Depreciation $ 4,800,000 2,160,000 2,640,000 Advertising, salaries, and other fixed $ 840,000 1,076,000 Total fixed expenses 1,916,000 $ 724,000 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 Req 2 Req 31 Req 4A Req 4B Would Casey be inclined to pursue this investment opportunity? Yes ONO < Req 4A Req 48