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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $4,200,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 20%. The project would provide net operating income each year for five years as follows; Sales $4,100,000, Variable Expenses $1,880,000, Contribution margin $2,220,000, Fixed expenses: Advertising, salaries and other fixed out-of-pocket costs $770,000, Depreciation $840,000, Total fixed expenses: $1,610,000, Net operating income $610,000. 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 would 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?