Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his divisions return on investment (ROI), which has been above 21% each of the last three years. Casey is considering a capital budgeting project that would require a $3,700,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Companys discount rate is 17%. The project would provide net operating income each year for five years as follows: Sales $ 3,600,000 Variable expenses 1,680,000 Contribution margin 1,920,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 720,000 Depreciation 740,000 Total fixed expenses 1,460,000 Net operating income $ 460,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the projects net present value? 2. What is the projects internal rate of return to the nearest whole percent? 3. What is the projects 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?