1. How far would a 1,000 pound cannon ball travel before it hit the ground (or water) if fired from a cannon at a muzzle velocity of 40 mph (58.66 ft/sec) if the muzzle was 4 feet off the ground?
The weight of the projectile is relatively unimportant.
Galileo and the guys in the moon hoax

showed that a canonball and a feather are accelerated toward the center of a massive object at the same rate.
You will have make guesses about the coefficient of drag because that will cause the velocity of the engine and prop to fall off continually from the time your cannon is fired until the projectile hits the ground.
I am pretty sure that this means you need calculus to get an excellent answer to your question.
Here is a
free fall calculator. The time that a projectile will be in the air is identical to the time that it takes to drop something straight down. The same force that makes something fall straight down will act continually on the projectile, assuming that it is not in the shape of a lifting body.
Gravitational acceleration (g) 9.80665 m/s²
Initial velocity (v₀) heading straight down = 0 ft/s
Height (h) 4 ft
Time of fall (t) 0.4986
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58.66 feet per second times 0.4986 seconds = 29.247876 feet
In other words, probably in or near the pond.
One source among dozens, if not hundreds:
Does a Fired Bullet Hit the Ground at the Same Time as a Dropped One?2. How fast is it going when it hits the ground (or water).
I'm going to say fractionally less than 58.66 fps, but not enough to make any difference. The impact of 1000 pounds going somewhere near that velocity is going to hurt whatever it hits.
3. Assuming it hits water, how far will it travel before coming to a stop?
Not far! It's not going to skip like stone, which must be lyric from some 1960s folk song. The straight-down velocity after 0.4986 seconds of free-fall will be 4.89 meters per second.
"Banking off of the northeast winds,
Sailing on a summer breeze,
And skipping over the ocean like a stone."
Fred Neil and Harry Nilsson, "Everybody's Talkin,'" 1966, featured in
Midnight Cowboy in 1969.
Of course, and engine and prop will have more drag than a cannon ball, but this is a good starting point for figuring how far the engine might be from the island.