Exbarer 7e-tPretent Value of \$t: 0++7x Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return on investment (ROD, Which has been above 23% each of the last three years. Casey is considering a capitai budgeting project that would require a $5,620,000 irvestment in equipment with a useful ufe of five years and no salvage value. Pigeon Company's discount rate is 195. The project would provide net operating income each year for five years as follows Click here to vew EMibit 78 . 1 and Exhibit 78.2 to determine the appropriate discount foctor(s) using tables. Required: 1. What is the project s net present value? 2. What is the projects internal rate of retum to the nearest whole percent? 3. What is the project's simple rate of retum? 4. Would the company want Cosey to pursue this imvestment opportunity? 4. b. Would Casey be inclined to pursie thes investrment opportunify? Complete this question by entering your answers in the tabs below. What is the projecto intemal rate of retum? (hound your answer to the nearest nhole percentage, l.e. 0.123 should be contidered as 12% ) \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 Prnoo & 4x & 55 & 6x & n & As & 45 & N5: & ms & 125 & Dro & Wh & 158 & 6x & Dos & & m & 20% & 215 & 2 & & 245 & 85 \\ \hline 1 & 0562 & 0987 & 094 & 0905 & 0926 & & 0500 & 0901 & 0878 & 0185 & 08n & & 032 & 0ass & 084 & 0.840 & 0RI3 & 0 H26 & 0820 & 0813 & 0806 & 0800 \\ \hline 7 & 1805 & tas9 & 1833 & 1608 & 1783 & 134 & 1736 & 173 & 1690 & 1668 & 1647 & 1626 & 1605 & 1565 & 1566 & 154 & 15hh & 1509 & 1492 & 1474 & 1457 & 1440 \\ \hline 3 & 25 & 273 & 2673 & 2624 & 2571 & 2531 & 2487 & 244 & 2402 & 235t & 292 & 2280 & 2246 & 2210 & 2MH & 2140 & 2106 & 2074 & 2042 & 2011 & 1901 & 1957 \\ \hline 4 & 3630 & 3546 & 3465 & & & 3260 & 3120 & 3502 & 3097 & 2974 & 2914 & 2855 & & 2143 & 2690 & 2639 & 589 & 2.540 & 2494 & 244 & 2404 & 2362 \\ \hline 3 & 4452 & 4320 & 420 & 4100 & 3933 & 300 & 379 & 3696 & 3605 & 3517 & -3433 & 3352 & 3.274 & 3199 & 3127 & 3058 & 2991 & 2926 & 2854 & 2603 & 2745 & 2689 \\ \hline 8 & 5242 & som & 4917 & 41 & $621 & 4486 & 4.755 & 4231 & 411 & 998 & -3889 & 284 & 3685 & 3569 & 3498 & 3410 & 3326 & 3245 & 3167 & 3092 & 3020 & 2951 \\ \hline 7 & 6002 & 5766 & 5560 & 5389 & 5206 & 5033 & 4858 & 4 & 4564 & 4423 & 4760 & 4160 & 4039 & 3922 & 3812 & 3706 & 3605 & 3508 & 3416 & 3327 & 3242 & 1161 \\ \hline 5 & 6733 & 640 & 6210 & 59 & 574 & 55% & 5.735 & 5146 & 4968 & 4799 & 4639 & 4487 & 434 & 4207 & 4078 & 3954 & 3837 & 376 & -3619 & 3518 & 3421 & 3329 \\ \hline 9 & 7.435 & now & 602 & 635 & 6247 & 5995 & 5759 & 5531 & 5728 & 5mz & 4946 & 4m & 4607 & 4.451 & 4203 & 4253 & 4031 & 3905 & -3786 & 3673 & 3506 & 3463 \\ \hline 10 & 8mI & 172 & 7360 & 7024 & 670 & 64 th & 65 & & 5650 & 5425 & 5216 & 5070 & 4833 & 4689 & 94 & 4339 & 192 & 40S4 & 3923 & -3799 & 3682 & 35 \\ \hline & x0 & 8306 & 7kSV & 7499 & 7100 & 6805 & 6.495 & 6.207 & 5938 & 5687 & -5453 & 234 & 5029 & 4896 & 4656 & 4486 & 327 & 4m & 4035 & 3902 & 3776 & 3656 \\ \hline 12 & 9345 & 8867 & 8384 & 7943 & 7536 & & 6814 & 6492 & 6194 & 59 & 5660 & 5421 & 5+97 & 4908 & 4793 & 4611 & 4.439 & 4.278 & 4127 & 3985 & 3851 & 375 \\ \hline 1 & 905 & 9324 & ens] & 8756 & 7904 & 7487 & 7103 & 6750 & 6474 & 6172 & 5842 & 5583 & 532 & 5118 & 4910 & 475 & 4573 & 4362 & 4203 & 4053 & 3917 & 3780 \\ \hline 4 & 10563 & 9895 & 9205 & 8745 & 874 & & 7061 & 6902 & 6608 & 602 & 6002 & 5/24 & 5.068 & 5220 & 5008 & 4802 & 4611 & 4432 & 4265 & 4108 & 3962 & 824 \\ \hline 15 & & voze & 972 & 9108 & 13559 & 8051 & 7605 & 719 & 6=11 & 646? & 6147 & 5k47 & 5.575 & & 5092 & 426 & 4075 & 4459 & 4315 & 4153 & 4001 & 3859 \\ \hline 16 & 11652 & 10838 & 9096 & 944 & 8851 & 870 & 7824 & 7379 & 6974 & 6604 & 6265 & 5954 & 5668 & 5405 & 52 & 4938 & 4730 & 4.536 & 4757 & 4189 & 100 & ivs? \\ \hline V & 0166 & & 104n & 9203 & 912 & 8544 & 8022 & 7549 & 7120 & 6724 & 637 & 6041 & 5749 & 5475 & 522 & 4.990 & 4775 & 45%6 & 439 & 4219 & 4cos9 & 1960 \\ \hline tit & tosa & 600 & 102B & 10089 & 93m & anb & 8701 & 1702 & 1250 & 6840 & 6457 & 6128 & 514 & 534 & 52n & 500 & 412 & 4608 & 4419 & 4243 & 4080 & 9928 \\ \hline & 13134 & 12085 & 11158 & 10306 & 9604 & H950 & 8355 & 7839 & 7366 & 6938 & 6550 & 6+98 & 58n & 5584 & 5,3% & 5070 & 4843 & 4635 & 4442 & 4263 & 4097 & 3942 \\ \hline 20 & 0590 & & 11470 & 10594 & 9 sets & & 8514 & 2063 & 7469 & 7005 & 6623 & .6259 & 5909 & 5628 & 5353 & 5 tot & 4 kro & 4657 & 4460 & 4279 & & 3964 \\ \hline 21 & 14020 & 1721 & n76 & 10836 & 10097 & 9297 & R 649 & nors & 7962 & 7102 & 6687 & 6712 & 597 & 5.655 & 5.284 & 5127 & 4899 & 4675 & 4476 & 4202 & 4121 & 3963 \\ \hline2 & H451 & 0163 & 12042 & nost & 10201 & 942 & nM & $176 & 7645 & 7170 & 6743 & 6.759 & 6011 & 5696 & 5410 & 549 & 00 & 4690 & 44kB & 4302 & 4100 & 1970 \\ \hline 23 & 14ks7 & 04 an & p0 & m & 1077 & 9560 & & 8266 & m mi & 7200 & 6792 & 679 & 6044 & 573 & 5432 & 57 & 4925 & 4703 & 4699 & A311 & 413 & 3976 \\ \hline 14 & 1520 & & 12550 & 1149 & 90529 & 9707 & 8965 & & & 1280 & 6 . 595 & 6434 & 6073 & 5766 & 5451 & & 493 & 43 & 4507 & 4398 & 441 & 3941 \\ \hline 25 & 1562 & 14004 & 17783 & & vers. & 982 & 90n & & 7843 & 730 & 6kn & 6464 & 609 & 5766 & 5467 & 5795 & 490 & 121 & 4514 & 4.23 & AWI & 3985 \\ \hline 26 & & 1437 & noos & & 10410 & 9989 & 9161 & k4ks & 1896 & 737 & 6506 & s. & 6118 & 5783 & 54110 & 5206 & 4580 & 4mh & 4520 & 4328 & 4151 & 3088 \\ \hlinen & 16300 & 4643 & 124 & 1t 9 a & 10935 & 10027 & 923 & W54a & 290 & 1409 & 6905 & 654 & 6106 & 5798 & 54% & 5215 & 4964 & 4734 & 4524 & 433 & 4154 & 3990 \\ \hline 28 & 16663 & H 80 & 13406 & Dm & 11051 & 10116 & 9707 & x602 & 7904 & 7441 & 6961 & 6534 & 6157 & 519 & 5.502 & & 4970 & 470 & 4528 & 435 & & 300n \\ \hline 20 & & 1541 & 13591 & 1227 & & 1015A & 930 & 8650 & gon & 7470 & 6983 & 6551 & 6166 & 5 s.20 & 5560 & 5220 & 4975 & 4743 & 4531 & 433) & 4159 & 3994 \\ \hline 30 & 17298 & 1537 & 13765 & 12409 & $1258 & 10214 & 9477 & 8694 & 8055 & 7496 & 2003 & 6560 & 617 & 5829 & 550 & 5235 & 4979 & 4746 & 4534 & 4339 & 4160 & 3995 \\ \hline 40 & 2m & 7159 & ts 046 & 033 & 11985 & 0757 & n9 & H951 & 8744 & 7634 & 7105 & 6642 & 6233 & 5871 & 5.544 & 5758 & 4997 & ANOO & 4.544 & 434 & 46 & 390 \\ \hline \end{tabular} Exbarer 7e-tPretent Value of \$t: 0++7x Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return on investment (ROD, Which has been above 23% each of the last three years. Casey is considering a capitai budgeting project that would require a $5,620,000 irvestment in equipment with a useful ufe of five years and no salvage value. Pigeon Company's discount rate is 195. The project would provide net operating income each year for five years as follows Click here to vew EMibit 78 . 1 and Exhibit 78.2 to determine the appropriate discount foctor(s) using tables. Required: 1. What is the project s net present value? 2. What is the projects internal rate of retum to the nearest whole percent? 3. What is the project's simple rate of retum? 4. Would the company want Cosey to pursue this imvestment opportunity? 4. b. Would Casey be inclined to pursie thes investrment opportunify? Complete this question by entering your answers in the tabs below. What is the projecto intemal rate of retum? (hound your answer to the nearest nhole percentage, l.e. 0.123 should be contidered as 12% ) \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 Prnoo & 4x & 55 & 6x & n & As & 45 & N5: & ms & 125 & Dro & Wh & 158 & 6x & Dos & & m & 20% & 215 & 2 & & 245 & 85 \\ \hline 1 & 0562 & 0987 & 094 & 0905 & 0926 & & 0500 & 0901 & 0878 & 0185 & 08n & & 032 & 0ass & 084 & 0.840 & 0RI3 & 0 H26 & 0820 & 0813 & 0806 & 0800 \\ \hline 7 & 1805 & tas9 & 1833 & 1608 & 1783 & 134 & 1736 & 173 & 1690 & 1668 & 1647 & 1626 & 1605 & 1565 & 1566 & 154 & 15hh & 1509 & 1492 & 1474 & 1457 & 1440 \\ \hline 3 & 25 & 273 & 2673 & 2624 & 2571 & 2531 & 2487 & 244 & 2402 & 235t & 292 & 2280 & 2246 & 2210 & 2MH & 2140 & 2106 & 2074 & 2042 & 2011 & 1901 & 1957 \\ \hline 4 & 3630 & 3546 & 3465 & & & 3260 & 3120 & 3502 & 3097 & 2974 & 2914 & 2855 & & 2143 & 2690 & 2639 & 589 & 2.540 & 2494 & 244 & 2404 & 2362 \\ \hline 3 & 4452 & 4320 & 420 & 4100 & 3933 & 300 & 379 & 3696 & 3605 & 3517 & -3433 & 3352 & 3.274 & 3199 & 3127 & 3058 & 2991 & 2926 & 2854 & 2603 & 2745 & 2689 \\ \hline 8 & 5242 & som & 4917 & 41 & $621 & 4486 & 4.755 & 4231 & 411 & 998 & -3889 & 284 & 3685 & 3569 & 3498 & 3410 & 3326 & 3245 & 3167 & 3092 & 3020 & 2951 \\ \hline 7 & 6002 & 5766 & 5560 & 5389 & 5206 & 5033 & 4858 & 4 & 4564 & 4423 & 4760 & 4160 & 4039 & 3922 & 3812 & 3706 & 3605 & 3508 & 3416 & 3327 & 3242 & 1161 \\ \hline 5 & 6733 & 640 & 6210 & 59 & 574 & 55% & 5.735 & 5146 & 4968 & 4799 & 4639 & 4487 & 434 & 4207 & 4078 & 3954 & 3837 & 376 & -3619 & 3518 & 3421 & 3329 \\ \hline 9 & 7.435 & now & 602 & 635 & 6247 & 5995 & 5759 & 5531 & 5728 & 5mz & 4946 & 4m & 4607 & 4.451 & 4203 & 4253 & 4031 & 3905 & -3786 & 3673 & 3506 & 3463 \\ \hline 10 & 8mI & 172 & 7360 & 7024 & 670 & 64 th & 65 & & 5650 & 5425 & 5216 & 5070 & 4833 & 4689 & 94 & 4339 & 192 & 40S4 & 3923 & -3799 & 3682 & 35 \\ \hline & x0 & 8306 & 7kSV & 7499 & 7100 & 6805 & 6.495 & 6.207 & 5938 & 5687 & -5453 & 234 & 5029 & 4896 & 4656 & 4486 & 327 & 4m & 4035 & 3902 & 3776 & 3656 \\ \hline 12 & 9345 & 8867 & 8384 & 7943 & 7536 & & 6814 & 6492 & 6194 & 59 & 5660 & 5421 & 5+97 & 4908 & 4793 & 4611 & 4.439 & 4.278 & 4127 & 3985 & 3851 & 375 \\ \hline 1 & 905 & 9324 & ens] & 8756 & 7904 & 7487 & 7103 & 6750 & 6474 & 6172 & 5842 & 5583 & 532 & 5118 & 4910 & 475 & 4573 & 4362 & 4203 & 4053 & 3917 & 3780 \\ \hline 4 & 10563 & 9895 & 9205 & 8745 & 874 & & 7061 & 6902 & 6608 & 602 & 6002 & 5/24 & 5.068 & 5220 & 5008 & 4802 & 4611 & 4432 & 4265 & 4108 & 3962 & 824 \\ \hline 15 & & voze & 972 & 9108 & 13559 & 8051 & 7605 & 719 & 6=11 & 646? & 6147 & 5k47 & 5.575 & & 5092 & 426 & 4075 & 4459 & 4315 & 4153 & 4001 & 3859 \\ \hline 16 & 11652 & 10838 & 9096 & 944 & 8851 & 870 & 7824 & 7379 & 6974 & 6604 & 6265 & 5954 & 5668 & 5405 & 52 & 4938 & 4730 & 4.536 & 4757 & 4189 & 100 & ivs? \\ \hline V & 0166 & & 104n & 9203 & 912 & 8544 & 8022 & 7549 & 7120 & 6724 & 637 & 6041 & 5749 & 5475 & 522 & 4.990 & 4775 & 45%6 & 439 & 4219 & 4cos9 & 1960 \\ \hline tit & tosa & 600 & 102B & 10089 & 93m & anb & 8701 & 1702 & 1250 & 6840 & 6457 & 6128 & 514 & 534 & 52n & 500 & 412 & 4608 & 4419 & 4243 & 4080 & 9928 \\ \hline & 13134 & 12085 & 11158 & 10306 & 9604 & H950 & 8355 & 7839 & 7366 & 6938 & 6550 & 6+98 & 58n & 5584 & 5,3% & 5070 & 4843 & 4635 & 4442 & 4263 & 4097 & 3942 \\ \hline 20 & 0590 & & 11470 & 10594 & 9 sets & & 8514 & 2063 & 7469 & 7005 & 6623 & .6259 & 5909 & 5628 & 5353 & 5 tot & 4 kro & 4657 & 4460 & 4279 & & 3964 \\ \hline 21 & 14020 & 1721 & n76 & 10836 & 10097 & 9297 & R 649 & nors & 7962 & 7102 & 6687 & 6712 & 597 & 5.655 & 5.284 & 5127 & 4899 & 4675 & 4476 & 4202 & 4121 & 3963 \\ \hline2 & H451 & 0163 & 12042 & nost & 10201 & 942 & nM & $176 & 7645 & 7170 & 6743 & 6.759 & 6011 & 5696 & 5410 & 549 & 00 & 4690 & 44kB & 4302 & 4100 & 1970 \\ \hline 23 & 14ks7 & 04 an & p0 & m & 1077 & 9560 & & 8266 & m mi & 7200 & 6792 & 679 & 6044 & 573 & 5432 & 57 & 4925 & 4703 & 4699 & A311 & 413 & 3976 \\ \hline 14 & 1520 & & 12550 & 1149 & 90529 & 9707 & 8965 & & & 1280 & 6 . 595 & 6434 & 6073 & 5766 & 5451 & & 493 & 43 & 4507 & 4398 & 441 & 3941 \\ \hline 25 & 1562 & 14004 & 17783 & & vers. & 982 & 90n & & 7843 & 730 & 6kn & 6464 & 609 & 5766 & 5467 & 5795 & 490 & 121 & 4514 & 4.23 & AWI & 3985 \\ \hline 26 & & 1437 & noos & & 10410 & 9989 & 9161 & k4ks & 1896 & 737 & 6506 & s. & 6118 & 5783 & 54110 & 5206 & 4580 & 4mh & 4520 & 4328 & 4151 & 3088 \\ \hlinen & 16300 & 4643 & 124 & 1t 9 a & 10935 & 10027 & 923 & W54a & 290 & 1409 & 6905 & 654 & 6106 & 5798 & 54% & 5215 & 4964 & 4734 & 4524 & 433 & 4154 & 3990 \\ \hline 28 & 16663 & H 80 & 13406 & Dm & 11051 & 10116 & 9707 & x602 & 7904 & 7441 & 6961 & 6534 & 6157 & 519 & 5.502 & & 4970 & 470 & 4528 & 435 & & 300n \\ \hline 20 & & 1541 & 13591 & 1227 & & 1015A & 930 & 8650 & gon & 7470 & 6983 & 6551 & 6166 & 5 s.20 & 5560 & 5220 & 4975 & 4743 & 4531 & 433) & 4159 & 3994 \\ \hline 30 & 17298 & 1537 & 13765 & 12409 & $1258 & 10214 & 9477 & 8694 & 8055 & 7496 & 2003 & 6560 & 617 & 5829 & 550 & 5235 & 4979 & 4746 & 4534 & 4339 & 4160 & 3995 \\ \hline 40 & 2m & 7159 & ts 046 & 033 & 11985 & 0757 & n9 & H951 & 8744 & 7634 & 7105 & 6642 & 6233 & 5871 & 5.544 & 5758 & 4997 & ANOO & 4.544 & 434 & 46 & 390 \\ \hline \end{tabular}
