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 $5,510,000 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: $ 4,900,000 2,200,000 2,700,000 Advertising, salaries, and other fixed $850,000 1,102,000 out-of-pocket costs Total fixed expenses Net operating income 1,952,000 $ 748,000 Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables. Required 1. What is the project's net present value? (Round discount factor(s) to 3 decimal places.) Net t value 2. What is the project's internal rate of return to the nearest whole percent? I rate of return 3, what is the project's simple rate of retum? (Round percentage answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) Simple rate of return