Please answer all parts as this is one question. Thank you!
Cosey 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 $4,800,000 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: $ 4,500,000 2,040,000 2,460,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $810,000 960,000 1,770,000 $ 690,000 Click here to view Exhibit 128-1 and Exhibit 12B-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? 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? Complete this question by entering your answers in the tabs below. Reg 2 Reg 4A Reg 3 Reg 1 Reg 4B What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Rec Req 2 > Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req3 Req 4A Req 4B What is the project's internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.) Internal rate of retum % Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4A Reg 4B Would the company want Casey to pursue this investment opportunity? Yes ONO Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Would Casey be inclined to pursue this investment opportunity? Yes O No