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 20% each of the last three years. casey is considering a capital budgeting project that would require a $3,500,000 investment in equipment with a useful life of five years and no salvage value. pigeon company's discount rate is 16%. the project would provide net operating income each year for five years as follows: