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 $$4,300,000$ 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 $ $4,200,000$

Variable expenses $1,920,000$

Contribution margin $2,280,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $780,000$

Depreciation $860,000$

Total fixed expenses $1,640,000$

Net operating income $ $640,000$

Required:

What is the project's net present value?

What is the project's internal rate of return to the nearest whole percent?

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.

What is the project's net present value?

Note: Round your final answer to the nearest whole dollar amount.