Check my work Check My Work button is now enabled2Item 1 Item 1 Time Remaining 4 hours 44 minutes 3 seconds 04:44:03 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:

Sales			$	4,000,000
Variable expenses				1,840,000
Contribution margin				2,160,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	760,000
Depreciation		820,000
Total fixed expenses				1,580,000
Net operating income			$	580,000

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. What is the projects internal rate of return to the nearest whole percent?

What is the project's internal rate of return? (Ro 12%.) Internal rate of return K R