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 $4,000,000 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 $3,900,000 Variable expenses 1,800,000 Contribution margin 2,100,000 Fixed expenses Advertising, salaries, and other fixed $750,000 out-of-pocket costs Depreciation 800,000 Total fixed expenses 1,550,000 Net operating income S 550,000 Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables Required 1. What is the project's net present value? (Use the appropriate table to determine the discount factor(s).) presen 2. What is the project's simple rate of return? (Round percentage answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) imple rate eturn 3-a.Would the company want Casey to pursue this investment opportunity? O Yes No