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Please answer all parts and explain inbetween steps thank you!! Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely

Please answer all parts and explain inbetween steps thank you!! image text in transcribed
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 24% each of the last three years. Casey is considering a capital budgeting project that would require a $5,850,000 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: $ 5,200,000 2,320,000 2,880,000 * Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 880,000 1,170,000 2.050.000 830,000 Click here to view Exhibit 13.1 and Exhibit 138-2. to determine the appropriate discount factors) 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? 4-6. Would the company want Casey to pursue this investment opportunity? 4-6. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below

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