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 is 15%. The project would provide net operating income each year for five years as follows: $2,500,000 1,000,000 1,500,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 600,000 600,000 1 200.000 $100,000 Click here to view Exhibit and Exhib.2to determine the appropriate discount factor) using cobles Required: 1. Compute the project's net present Value 2. Compute the project simple rate of return 3a. Would the company wont 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