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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value, Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: $ 5,400,000 2,400.000 3,000,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of- pocket coats Depreciation Total tixed expenses Net operating income $ 900,000 1,220.000 2.120,000 $ 880,000 Click here to view Exhibit 148-1 and Exhibit 148-2. 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? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Reg 48 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value RE Reg 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 24% each of the last three years. Casey is considering a capital budgeting project that would require a 56,100,000 Investment In equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: Sales $ 5,400,000 Variable expennen 2,400,000 Contribution margin 3,000,000 Tixed expenses Advertising, salaries, and other fixed out-of- pocket conta $ 900,000 Depreciation 1,220,000 Total fixed expenses 2,120,000 Net operating income $ 880,000 Click here to view Exhibit 1481 and Exhibit 148-2. 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? 4-5. Would the company want Casey to pursue this investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req4 Reg 4 What is the projects Internal rate of return? (Round your answer to the nearest whole percentage, Le: 0.123 should be considered as 12%) Internal rate of return % 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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: $ 5,400,000 2,400,000 3,000,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of- pocket coats Depreciation Total taxed expenses Net operating income $ 900,000 1,220,000 2,120,000 $ 880,000 Click here to view Exhibit 148.1 and Exhibit 148 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? 4-6. Would the company wont Casey to pursue this investment opportunity? 4-6. Would Cosey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg 3 Reg 4 Req 48 What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of retum 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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows: Sales $ 5,400,000 Variable expenses 2,400,000 Contribution margin 3,000,000 Pixed expenses: Advertising, salaries, and other fixed out-of- pocket costs $ 900,000 Depreciation 1,220,000 Total fixed expenses 2,120.000 Net operating income $ 880,000 Click here to view Exhibit 148 1 and Exhibit 148:2, 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? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. rea Reg 1 92 Reg 3 Reg 4 Reg 48 Would the company want Casey to pursue this investment opportunity? Yos ONO 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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $6,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating Income each year for five years as follows: 5 5,400,000 2,400,000 3,000,000 Sales Variable expennes Contribution margin Pixed expenses Advertising, walaries, and other fixed out of pocket costs Depreciation Total fixed expenses Net operating incomo $ 900,000 1,220.000 2,120,000 $ 880,000 Click here to view Exhibit 148-1 and Exhibit 148-2. 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? 4-5. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Reb 18 Would Casey be inclined to pursue this investment opportunity? O You No