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 20% each of the last three years. Casey is considering a capital budgeung project that would require a $3,600,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: $ 3,5ee, eee 1,640,00 1,860,000 Sales variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $710, eee 720,000 1,430,000 430, eee $ Click here to view Exhibit 123.1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the project's net present value? 2. What is the project's internal rate of return? 3. What is the project's simple rate of return? 4-9. Would the company want Casey to pursue this Investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Reg 4 Req 48 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Ren Req2 > 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 20% each of the last three years. Casey is considering a capital budgeting project that would require a $3,600,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: $ 3, see, eee 1,640, eee 1,860,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 5 710,000 720,000 1,430,eee 430, eee $ Click here to view Exhibit 123.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables Required: 1. What is the project's net present value? 2 What is the project's Internal rate of return? 3. What is the project's simple rate of return? 4-4. Would the company want Casey to pursue this Investment opportunity? 4.b. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Route Reg 3 Reg 4A Reg 4B What is the project's internal rate of return? (Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%.) Internal rate of retum % 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 20% each of the last three years. Casey is considering a capital budgeting project that would require a $3,600,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: $ 3,500,000 1,640,000 1,860,000 Sales variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $710, eee 720,000 1,430,eee 430, eee $ Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables. Required: 1. What is the project's net present value? 2. What is the project's Internal rate of return? 3. What is the project's simple rate of return? 4-0. Would the company want Casey to pursue this investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req1 Req2 Reg Reg 4A Req 48 What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of return