7 Shoped Print 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 $3,560,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 16%. The project would provide net operating income each year for five years as follows: Sales $3,000,000 Variable expenses 1,250.000 Contribution margin 1,750,000 Fixed expenses Advertising, salaries, and other fixed out- ot-pocket costs $ 650,000 Depreciation 712.000 Total Fixed expenses 1,362.000 Wat operating Income 388,000 Click here to view Exhb128.1 and Exhib.128.2. to determine the appropriate discount factors) 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 Demick to pursue this investment opportunity? 3b. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg! Reg 2 Red 3A Reg 20 Compute the project net present value. (Round your final answer to the nearest whole dollar amount.) Not present value Reg 2 > 7 Skied Print 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 $3,560,000 investment in equipment with a useful life of five years and no salvage value Holston Company's discount rate is 16% The project would provide net operating income each year for five years as follows Sales $3,000,000 Variable expenses 1.250.000 Contribution margin 1,750,000 Fixed expenses Advertisins. salaries, and other fixed out of-pocket costs $ 650,000 Depreciation 212,000 Total fixed expenses 1,362,000 Net operating income $ 38,000 Click here to view Exhibit 120.1 and Exhibit 12B 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 3b. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg! Reg2 R 3A Red 38 Compute the project's simple rate of retum. (Round your answer to i dedmal place le. 0.123 should be considered as 12:39) Simple rate of return 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 $3.560,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is a 16%. The project would provide net operating income each year for five years as follows: Nipped $3,000,000 1,250,000 1,750,000 Print Sales Variable expenses Contribution margin FLxed expenses: Advertising. Salaries, and other fixed out of pocket costs Depreciation Total fixed expenses Niet operating Income $ 650,000 212.000 1.363.000 $385.000 Click here to view Exhibit:12B1 and Exhibit 12B-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 3b Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red SA Reg38 Would the company want Derrick to pursue this investment opportunity? Yes ONO ed int 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 $3.560,000 investment in equipment with a useful life of five years and no salvage value Holston Company's discount rate is 16%. The project would provide net operating income each year for five years as follows Sales $ 3,000,000 Variable expenses 1,250,000 Contribution margin 1,750,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 650,000 Depreciation 212,000 Total fixed expenses 1,362,000 Net operating income $ 300,000 Click here to view Exhibit 123.1 and Exhibit 128-2. 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 Derck to pursue this investment opportunity? 3b. Would Derrick be inclined to pursue this investment opportunity Complete this question by entering your answers in the tabs below. Reg Reg2 Req3A Req38 Would Derrick be inclined to pursue this investment opportunity? Yes ONO