Problem 12-17 (Algo) Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return (LO12-2, LO12-3, L012-6) Casey Nelson is a divisional manager for Pigeon Company. His annual pay ralses 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 Yixed expenses Advertising, salaries, and other fixed out-of-pocket conto Depreciation Total fixed expenses Net operating income $ 880,000 1,170,000 2.050.000 $830,000 Click here to view Exhibit 128-1 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 return? 4-a. 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. Req1 Reg 2 Reg 3 Reg 4A Reg 43 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net prosent value Reg 1 Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Req 4B What is the project's internal rate of return? (Round your answer to the nearest whole percentage, i.e. 0.123 shoul considered as 12%.) Internal rate of retum % Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req3 Req 4A Req 4B What is the project's simple rate of return? (Round your answer to 1 decimal place.) Simple rate of return % tes Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Rda 4A Req 48 Would the company want Casey to pursue this investment opportunity? Yes No Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 4B Would Casey be inclined to pursue this investment opportunity? Yes No