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: $4,500,000 2,000,000 2,500,000 Sales Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 780,000 1,234,000 1,814,000 $ 686,000 Click here to view Exhibit 78-1 and Exhibit 7B-2, to determine the appropriate discount factors) using tables Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of return 3a. 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. Req 1 Req 2 Req Req 3B Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Not present value K Reg Reg 2 >