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 25% each of the last three years. Derrick is considering a capital budgeting project that would require a $5,160,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 18%. The project would provide net operating income each year for five years as follows: Sales Variable expenses $4.400.000 1,950,000 2.450,000 Contribution margin Fixed expenses Advertising, salaries, and other fored out-of-pocket costs Depreciation $790,000 790,000 Total foed expenses 1,580.000 Net operating income $ 870,000 Use Excel or a financial calculator to solve Required: 1. Compute the project's net present value to the nearest dollar Net present value 2. 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 3-a. Would the company want Derrick to pursue this investment opportunity? Yes No 3-6. Would Derrick be inclined to pursue this investment opportunity? Yes No