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 $4,450,000 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: $3,800,000 1,650,000 2,150,000 Salon Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 710,000 890,000 1,600,000 $ 550,000 Click here to view Exhibit 138.1 and Exhibit 13B-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. 30. Would the company want Derrick to pursue this investment opportunity? 3b. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Compute the project's net present value. (Round your final answer to the nearest whole dollar amount Net prenent value ROU Req2 >