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 23% each of the last three years. Casey is considering a capital budgeting project that would require a $4,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Companys discount rate is 19%. The project would provide net operating income each year for five years as follows:

Problem 11-13A Net Present Value Analysis; Simple Rate of Return [LO11-2, LO11-4] 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 $4,100,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 19%. The project would provide net operating income each year for five years as follows Sales Variable expenses $4,000,000 1,840,000 Contribution margin Fixed expenses: 2,160,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $760,000 820,000 Total fixed expenses 1,580,000 Net operating income $ 580,000 Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required 1. What is the project's net present value? (Use the appropriate table to determine the discount factor(s).) Net present value