Derick lverson is a divisional manager for Holston Compary. His annual pay ralses are largely determined by his division's return on investment (RO), which has been above 25% each of the last three years, Dernck is considening a capital budgeung project that would require a $5,150,000 investment in equipment with a useful ife of five years and no salvage value. Holston Company's discount rate is 17\%. The project would provide net operating income each year for five years as follows Cick here to view Exbibit 78 - and Exhibit 782 2 to determine the oppropilate olscount factoris) using tables. Requlred: 1. Compute the projects net present value 2 Compute the project's simple rate of return. 3a. Would the company want Dernck to pursue this investrent oppontunty? 3b. Would Derrick be incined to pursue thes investment opporturlty