Derrick Iverson is a divisional manager for Holston Company, Derrick is considering a capital budgeting project that would require a $4,120,000 investment in equipment with a useful life 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: $3,500,000 1,500,000 2,000,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 690,000 824,000 1,514,000 $ 486,000 Click here to view Exhibit 148.1 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Net present value Derrick Iverson is a divisional manager for Holston Company. Derrick is considering a capital budgeting project that would require a $4,120,000 investment in equipment with a useful life 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: $3,500,000 1,500,000 2,000,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 690,000 824,000 1,514,000 $ 486,000 Click here to view Exhibit 148.1 and Exhibit 148-2. to determine the appropriate discount foctor(s) using tobles. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Compute the project's simple rate of return (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%) Simple rate of return