3 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 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,000,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate 5 17%. The project would provide net operating incomo each year for five years as follows: $2,700,000 1.100.000 1,600,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising. salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 5 620,000 616,000 1,236,000 364.000 Click here to view Exhib148.1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables Required: 1 Compute the project's not prosent 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? References Reg 1 Reg 2 Req Req 3B Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Net present value rences Reg 1 Reg 2 Req 3A Reg 38 Compute the project's simple rate of return. (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%) Simple rate of retum % orences Req 1 Reg 2 Red 3A Req 3B Would the company want Derrick to pursue this investment opportunity? Yes ONO Warcrences Reg 1 Req 2 Reg Reg 3B Would Derrick be inclined to pursue this investment opportunity? OYes ONO