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Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return on investment ( ROI )

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 requiring a $5,620,000 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:
\table[[\table[[Sales],[Variable expenses],[Contribution margin]],,\table[[{f2375c99c-2260-40b0-ba3a-d3aac01fad7e}
\table[[5,000,000
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