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 $4,100,000 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: 841 $4,000,000 1.840,000 2,168,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $760,000 820.00 1.580, eee 580,000 $ 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 peleent? 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 Reg 2 Reg 3 Reg 4A Reg 4B What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) ular i 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 23% each of the last three years. Casey is considering a capital budgeting project that would require a $4.100,000 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: 03:36 $ 4,000,000 1,840,000 2,160,000 ed Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 5760,000 820,000 1,580,000 $ 580,000 ces 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? 4-6. 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 Reg 4A Reg 4B What is the project's internal rate of return? (Round your answer to the nearest whole percentage, le 0.123 should be considered as 12%.) Intomal rate of return % Do Ren 3 > 4 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 $4,100,000 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: 08:03:33 $ 4,000,000 1,340,000 2,160,000 dpoed Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $760,000 820,000 1,580,000 5 580,000 Book Print erences Click here to view Exhibit 14B-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-b. 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 Reg 4A Reg 48 What is the project's simple rate of return? (Round your answer to I decimal place.) Simple rate of retum %
