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 $4,700,000 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:

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?

A Grades for Allen Hyatt: MBA51! X Unit 8 Homework x Course Hero X G how to screenshot on mac - Gc x + A https:/ewconnect.mheducation.com/flow/connect.html " G A Unit 8 Homework i Saved Help Save & Exit Submit Check my work 2 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 $4,700,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 15 19%. The project would provide net operating income each year for five years as follows: points Sales $ 4, 400, 000 Variable expenses 2,000 , 000 Contribution margin 2, 400, 000 Book Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 800 , 000 Depreciation 940, 000 Print Total fixed expenses 1, 740, 000 Net operating income 660,000 References Click here to view Exhibit 13B-1 and Exhibit 13B-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 4B What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Mc Graw