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 $3,200,000 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: Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the project s net present value (Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest dollar amount.) Net present value 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 % Would the company want Derrick to pursue this investment opportunity? Yes No Would Derrick be inclined to pursue this investment opportunity? Yes No