Web setup project error

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Visual-Studio

C#4.0

setup

Hi,
I am working on asp.net mvc 4 application in Visual studio 2013.
I created a Web Setup Project to deploy the application on IIS.
Every thing was working as expected until I added a custom action to the Web Setup Project. The custom action is used to change application pool identity. But when i run the setup I get the following error.

"Error 1001, Exception occurred while initializing the installation: System.BadImageFormateException. Could not load file or assembly 'file//C:\inetpub\wwwroot\...\PoolSetup.dll or one of its dependencies. This assembly is built by runtime newer than the currently loaded runtime and cannot be loaded"

PoolSetup.dll is the class library I am calling as a Custom Action in my Web Deployment project. I was referencing to the System.DirectoryServices so I removed this reference and commented all the code inside the Install method of the Installer class. But when i rebuilt the project and installed I got the same above exception. My MVC project and the PoolSetup library are built under .Net 4.5.

Can some body help me to figure this out?

What I have tried:

I have written it in my question.