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 20% each of the last three years. Casey is considering a capital budgeting project that would require a $3,500,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: Sales $ 3,400,000 Variable expenses 1,600,000 Contribution margin 1,800,000 Fixed expenses Advertising, salaries, and other fixed out-of-pocket conta $ 700,000 Depreciation 700.000 Total fixed expenses 1,400,000 Met operating income $ 400,000 Click here to view Exhibit 128-1 and Exhibit12B2, 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? 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 Reg Req 4A Req 48 What is the project's net present value? (Round your nnat answer to the nearest whole dollar amount.) Net present value Req2 > Reg1 Reg 2 eg 3 Req 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%) Internal rate of retum % Reg 1 Req 2 Req3 Req 4A Req 4B What is the project's simple rate of return? (Round your answer to 1 decimal place.) % Simple rate of return Req 1 Reg 2 Reg 3 Req 4A Req 4B Would the company want Casey to pursue this investment opportunity? Yes No Req 1 Req 2 Req 3 Req 4A pReq 4B Would Casey be inclined to pursue this investment opportunity? Yes IONO