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 requiring a $4,000,000 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: pocket costs Depreciation $ 3,900,000 1,800,000 2,100,000 Advertising, salaries, and other fixed out-of- $ 750,000 800,000 1,550,000 Net operating income $ 550,000 Total fixed expenses Click here to view Exhibit 148-1 and Exhibit 14B-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. Required 1 Required 2 Required 3 Required 4A Required 48 What is the project's internal rate of return? Note: Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%.