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 $3,500,000 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: 3,400,000 1.600.000 1.800.000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $700.000 700.000 1.400.000 400,000 $ Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables Required: 1. What is the project's net present value? (Round discount factor(s) to 3 decimal places.) Net present value 2. What is the project's internal rate of return to the nearest whole percent? Internal rate of return % 3. 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%.) Simple rate of return % 4-a. Would the company want Casey to pursue this investment opportunity? Yes O No 4-6 Would Casey be inclined to pursue this investment opportunity? Yes No