What is the projects net present value?

What is the projects internal rate of return to the nearest whole percent?

What is the projects simple rate of return?

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 22% each of the last three years. Casey is considering a capital budgeting project that would require a $3,900,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 18%. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Fixed expenses $ 3,800,000 1,760,000 2,040,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $740,000 780,000 Total fixed expenses Net operating income 520,000 $ 520,000 Required 1. What is the project's net present value? (Round discount factor(s) to 3 decimal places.) et present value 2. What is the project's intemal rate of return to the nearest whole percent