Derrick iverson is a divisional manages for Holston Compary. His annual pay caises are largely determined by his division's return on investment (RO) which has been above 20 s each of the last three years. Denick is considering a capital budgeting project requiring a $3700000 investment in equipment with a usefur tife of five years and no savage value. Holiston Companys discount rate is 16%. The project would provide net operating income each year for five years as follows: Cick here to view Exhibic1481 and Exhbrt 148:2, to determine the approp/ate discount factor(s) using tables. Required: 1. Compute the projectis net present value. 2. Compute the projects simple rate of retuin 3a. Would the company want Dernick to pursue thas investment opportunity? 3b. Wouid Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Compute the projects net present value. Note: Aound your final anser to the nesrest mhole dollir amoun