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 $5,170,000 investment in equipment with a useful life of five years and no salvage value Holston Company's discount rate is 19%. The project would provide net operating income each year for five years as follows Sales $4,500,000 Variable expenses 2,000,000 Contribution margin 2,500,000 Fixed expenses Advertising, salaries, and other fixed $780,000 out-of-pocket costs Depreciation 780,000 Total fixed expenses 1,560,000 Net operating income $940,000 Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables Required 1. Compute the project's net present value. (Use the appropriate table to determine the discount factor(s), intermediate calculations and final answer to the nearest dollar amount.) et 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