Casey Nelson is a divisional manager for Pigeon Company. Hisannual 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 $ $4,300,000$ 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 $ $4,200,000$ Variable expenses $1,920,000$ Contribution margin $2,280,000$ Fixed expenses: Advertising, salaries, and other fixed out $-$ of pocket costs $ $780,000$ Depreciation $860,000$ Total fixed expenses $1,640,000$ Net operating income $ $640,000$ Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate 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 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?