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 pro ect 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 pro ect would provide net operating income each year for tive years as follows: Sales Variable expenses Contribution margin Fixed expenses: S 3,500,000 1.640,000 860,000 Advertising, salaries, and other fixed S710,000 720,000 out-of-pocket costs 430,000 Total fixed expenses Net operating income S 430,000 Click here to view Exhibit 88-1 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.) t value $ 165,438 2. What is the project's internal rate of return to the nearest whole percent? l 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%.) rate of return