scribe to Study... New Tab chrome://downloads HMHS GENESIS | Hea Citation Machine DeVry Student Port... C Home | Chegg.com mework i Saved 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 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,380,000 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: Sales Variable expenses Contribution margin Fixed expenses: of-pocket costs Depreciation $ 4,800,000 2,160,000 2,640,000 Advertising, salaries, and other fixed out- $840,000 1,076,000 Total fixed expenses 1,916,000 $ 724,000 Net operating income Click here to view Exhibit 12B-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 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-b. Would Casey be inclined to pursue this investment opportunity?