Problem 14-17 (Algo) Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return (L014-2, LO14-3, LO14-6) 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 $5,050,000 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 Sales $.4,700,000 Variable expenses 2,120.000 Contribution margin 2,580,00 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 330,000 Depreciation 1.010,000 Total fixed expenses 1,840,000 Net operating Income 5 740,000 Click here to view Exhibit 148.1 and Exhibit 14B-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 4 Reg 40 what is the project's net present value? (Round your final answer to the nearest whole dollar amount.) Net present value Reg 2 > Meule 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. Reg 1 Reg 2 ReQ3 Reg 4 Reg 46 What is the project's internal rate of return? (Round your answer to the nearest whole percentage, le 0.123 should be considered as 12.) Internal rate of return 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? 4-1 Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B What is the project's simple rate of return? (Round your answer to i decimal place.) Simple rate of return ( Req2 Req 4A > 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? 4-1 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 1 Reg 2 Reg 3 Reg 4 Reg 4B Would the company want Casey to pursue this investment opportunity? OYes O No Pen AR 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. Reg 2 Reg 48 Reg: Req3 Req 4A Would Casey be inclined to pursue this investment opportunity? Yes ONO PAA