Casey Nelson is a divisional manager for Pigeon Company. His annual pay rases ave largely determined by his division's refurn on investment IROO. which has been above 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,620,000 investment in equipment with a useful life of five years and no salvage value. Plgeon Company's discount rate is 195. The project would provide net operating income each year for five years as follows Click bere to view and Exhbit 78-2. to determine the approprate 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 to the nearest whole percent? 3. What is the projects simple rate of refurn? 4-a. Would the company want Casey to pursue this imvestment onportunity? 4-b Would Casey be inclined to pursue this imestment opportunity? Complete this question by entering your answers in the tebs below. Would the company wank casey to pursue this investment epporturity? \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline rods. & 4) & 5x & 6x & n & 8x & 98 & sos & 118 & & 13x & & DS: & 56 & m & 156 & x & 205 & 2 & m & 235 & & 295 \\ \hline 1 & 0962 & 0952 & 0.943 & 0935 & 0926 & 091 & 0909 & 0.901 & 0893 & OB85 & o.81 & 0870 & 0862 & 0855 & 0847 & 0840 & OB3 & 0826 & 0820 & 088 & 0806 & 0800 \\ \hline 2 & 1886 & 1859 & 1833 & 1808 & 1783 & 1759 & 1756 & 178 & 1690 & 1668 & 164) & 1626 & 1605 & 15 ses & 1566 & 154] & 1578 & 1509 & 1492 & 1474 & 1657 & \\ \hline 3 & 2715 & 2723 & 2673 & 2624 & 25n & 2531 & 2487 & 2.464 & 2402 & 2361 & 2m & 2783 & 224 & 2220 & 2174 & 2340 & 206 & 2014 & 2012 & 20tl & 1981 & 1952 \\ \hline 4 & 3630 & 3506 & 3465 & 3381 & 3312 & 3.240 & 3100 & 302 & 303 & 2974 & 2914 & 2.855 & & 270 & 2690 & 2639 & 2569 & 2500 & 204 & 2448 & 2404 & \\ \hline 5 & 4452 & 4329 & 4212 & 400 & 3993 & 3890 & 379 & 3696 & 3605 & 3517 & 3433 & 3352 & 3274 & 3199 & 312 & 3058 & 2991 & 2926 & 2861 & 2803 & 2745 & 2609 \\ \hline 6 & 5242 & 5076 & 49 & 4701 & 4623 & 4406 & 4355 & 4231 & 4III & 3998 & 3889 & 3784 & 3645 & 3560 & 3498 & 340 & 3326 & 3745 & . 2107 & 3092 & 1020 & 2951 \\ \hline 7 & 6.002 & 5786 & 5582 & 5389 & 5206 & 5033 & 4868 & 42 & 4564 & 4423 & 4288 & 460 & 4079 & 3922 & 3812 & 3706 & 3605 & 3508 & 345 & 3m & 3242 & 3161 \\ \hline 8 & 6733 & 6463 & 6200 & 59 & 5707 & 5535 & 5335 & 5186 & 496% & 4799 & 4639 & & 4344 & 4207 & 4078 & 3954 & 3897 & 372 & 19 & 358 & Q1 & 3329 \\ \hline 9 & 7435 & & 6802 & 6.515 & 6.247 & 5.995 & 5739 & 5531 & 5328 & 5130 & 4945 & 4m & 4607 & 4451 & 4303 & 453 & 4031 & 3905 & 3705 & 3673 & 3566 & 3453 \\ \hline 10 & 8111 & m & 7360 & 7024 & 670 & 648 & 6145 & 5889 & 5650 & 5.426 & 5285 & 5019 & 4803 & 4659 & 4494 & 4309 & ABR & 4054 & 3923 & 3m & 3682 & 35AH \\ \hline & 860 & 83C4 & 7k81 & & 709 & 6805 & 6.495 & 6.201 & 5938 & 5687 & 5.453 & 524 & 5029 & 4896 & 4656 & & 4327 & (11) & 4035 & 3902 & 370 & 3656 \\ \hline 12 & 9365 & 8860 & & 7943 & 7536 & & 6814 & 645 & 6194 & 59 & 5660 & 5421 & & 4588 & 4793 & 46 & 400 & 4278 & 4Q7) & 3945 & 795t & 1725 \\ \hline 13 & 9986 & 9794 & 8.853 & 8.35 & 790 & 7487 & 7103 & 6730 & 64,4 & 602 & 5842 & 5583 & 530 & 54 & 490 & 4715 & 4530 & 4362 & 4203 & 4053 & 39? & 3700 \\ \hline M & 0563 & 9kPO & 9255 & 87 & 82 & & 1367 & 6982 & 6627 & 6.302 & 6002 & 5724 & 5csg & 5229 & 5008 & 4802 & 46 & 4422 & 4265 & 4Nog & 1967 & 1824 \\ \hline 15 & 111t8 & 10360 & 972 & 9108 & 8559 & R061 & 7606 & & 6811 & 6.482 & 6142 & 5847 & 5575 & 5124 & 5092 & & 4615 & 449 & 135: & 480 & 4001 & 3859 \\ \hline 16 & 11652 & 1038 & 10106 & 947 & 8BSI & & 7824 & 739 & 699 & 6604 & 6.265 & 5954 & 5ses & -5005 & 57 & 4938 & Ano & 4516 & A.351 & 4in & 4033 & 3807 \\ \hline 11 & & 11274 & 1040 & 9763 & 91 & 85 & 8027 & 7549 & 720 & 6ng & 6m & 6017 & 5740 & 54/5 & 5m & 4900 & 47s & 45% & 4391 & 42m & 059 & (5) \\ \hline 18 & 12659 & n690 & 200 & 10059 & 9m & 87 & 8201 & m02 & 7250 & 6840 & 6467 & 612 & 588 & 554 & 52n & 5003 & & 4604 & 449 & 4283 & A660 & 1928 \\ \hline & & 12085 & H15 & 10 & 9604 & 8950 & 8365 & 100 & 1306 & 608 & 6550 & 6108 & 5km & & 530 & 50% & & 4635 & 442 & 4.70 & 1001 & \\ \hline 20 & 1050 & 12462 & 11470 & 1059 & 9. & 9120 & 254 & 705 & & 7025 & 6673 & 6259 & 5520 & 562 & 5261 & 5101 & 4800 & 265 & (160) & & 410 & 1954 \\ \hline 21 & 14029 & 12 M21 & 11/64 & & 1000 & & 860) & 8075 & 192 & n0? & 6687 & 630 & & 5645 & 5324 & 5ll & m & 467 & 4476 & 4792 & 401 & 1061 \\ \hlinen & 1451 & 0169 & 1200 & Hosi & 1001 & 948 & nm & & 7645 & & 670 & 6.00 & & 5606 & 5410 & 4) & 00 & 4690 & 4488 & 4.02 & 400 & wo \\ \hline 23 & M ASI & 0480 & 12003 & nm & 1037 & 9580 & & 8266 & ms & 1730 & 679 & 6709 & 604 & 573 & 540 & & 4905 & 403 & 160 & 4II & & \\ \hline 24 & 15,201 & 079 & 12550 & 11469 & & 9707 & nses & 839 & 7m4 & & 6.035 & 643 & 607 & 5/46 & 5.4515 & & oir & 43 & 4503 & & 410 & 204 \\ \hline 25 & 56n & Mos & 1278 & 11654 & 10675 & 923 & 90 & & & 730 & am & 6.4/4 & 60m & 50 & 5467 & 5ms & A MAII & & 4514 & & 46 & 205 \\ \hline 26 & 15963 & 14375 & 8003 & & 10mo & 9929 & 9165 & 8488 & 7606 & m & 6906 & 649t & & 578 & 5480 & 5206 & 4996 & & & oun & 461 & \\ \hline 2 & 16. 330 & M 643 & 0211 & 1199 ? & 90935 & 10002 & 9201 & 8548 & 7503 & 7409 & 935 & 654 & 606 & 88.5 & & & & 4734 & 154 & 32 & S4 & 90 \\ \hline 2k & 15663 & & 0205 & 219 & rosi & 10116 & 9307 & 8602 & & & 6961 & 659 & 6kz & 510 & 5502 & 5m & 4970 & 470 & 2hn & 85 & (5) & \\ \hline 29 & 8594 & 15,41 & 13598 & 12278 & & 105in & 9310 & 2650 & kon & & 6983 & 6s51 & 606 & 52020 & 5500 & 3729 & 495 & (4) & \begin{tabular}{l} 6. \\ (5) \end{tabular} & in & \begin{tabular}{l} 459 \\ 460 \end{tabular} & \begin{tabular}{l} 3m4 \\ 35 \end{tabular} \\ \hline 30 & 17292 & 53 & 0765 & 12400 & Hast & 027 & 947 & log & cos & & 7003 & 6560 & 617 & 5Wg & 559 & 527 & \begin{tabular}{l} 4989 \\ 4597 \end{tabular} & 40 & 154 & (3) & 46 & inen \\ \hline 40 & 1970 & & 15006 & & 11905 & & 9m & & 10244 & & nos & 6(4) & 6203 & & 5548 & (8) & 9m & & & & & \\ \hline \end{tabular}
