0 Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 25% each of the last three years. Derrick is considering a capital budgeting project that woule require a $4,900,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate 18%. The project would provide net operating Income each year for five years as follows: 2.36 points Skipped $4,200,000 1,850,000 2,350,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income eBook $ 755,000 980,000 1,735,000 615,000 Hint Click here to view Exhib: 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables, Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return 3a. Would the company want Derrick to pursue this investment opportunity? 36. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Reg 36 Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Net nesant Yahin Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return Investment (ROI), which has been above 25% each of the last three years. Derrick is considering a capital budgeting project that require a $4.900,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount 18%. The project would provide net operating income each year for five years as follows: 2.36 points Skipped $4,200,000 1,850,000 2,350,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 755,000 980,000 eBook 1,735,000 $ 615,000 Hint Click here to view Exhibit 14B-1 and Exhibit.14B-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return 3a. Would the company want Derrick to pursue this investment opportunity? 36. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Rear Reg 3A Reg 30 Compute the project's simple rate of return (Round your answer to 1 decimal place ... 0.123 should be considered as 12.3%) Simple rate of return