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p12 help- 5 requirements for 1 problem: exhibits are just present value tables Casey Neison is a divisional manager for Pigeon Company. His annual pay
p12 help- 5 requirements for 1 problem: exhibits are just present value tables
Casey Neison 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 capital budgeting project that would require a $4,700,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 19%, The project would provide net operating income each year for five years as follows. Cick here to view Exhbit128-1 and Exhibit 128-2, 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 retum? 4. Would the company want Casey to pursue this investment opportunity? 4-b. Would Casey be incined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. What is the project's net present value? (Round your final answer to the nearest whole dollar amount) Step by Step Solution
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