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 inivestment in equipment with a useful life of five years and no salvage value. Pigeon Cotmpany'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 3,900,000 1,800,000 2,100,000 01:00:31 Advertising, salaries, and other fixed out-of-pocket costs Depreelation $750,000 800 00 550,000 Total fixed expenses $ 550,000 Not operating income Click here to view Exhibit 13B.1 and Eshibit 130.2. to determine the appropriate discount factorte) 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? 4b. Would Casey be inclined to pursue this investment opportunity? kequirea: 1. What is the project's net present value? 2. W 4 hat 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? 010008 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B , What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Req 2 Save & Kequirea: 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? 4 Complete this question by entering your answers in the tabs below. 00:59:45 , Req 1 Req 3 Req 4A Req 4B What is the project's internal rate of return? (Round your answer to whole decimal place i.e. 0.123 should be considered as 12%.) Internal rate of returm Req 1 Req3 ) kequirea: 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? 8 005920Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 4B What is the project's simple rate of return? (Round percentage answer to 1 decimal place.) ple rate of return Req 2 Req 4A > 4 Kequirea: 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? 00:59:04) Complete this question by entering your answers in the tabs below. . Req 1 Req 2 Req 3Red 4A Req 4B Would the company want Casey to pursue this investment opportunity? Yes Req 3 Req 4B > Requirea: 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? 4 00:58:46) Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Would Casey be inclined to pursue this investment opportunity? ONo K Req 4A