Derrick lverson 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 $4,700,000 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 $4,100,000 Variable expenses 1,800,000 Contribution margin 2,300,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 735,000 Depreciation 940,000 Total fixed expenses 1,675,000 Net operating income 5 625:000 Click here to view Exhibit 731 and Exhibit 782, 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. 3a. Would the company want Derrick to pursue this investment opportunity? 3b. Would Derrick be inclined to pursue this investment opportunity? Req 1 Req 2 Req 3A Req 3B Compute the project's net present value. (Round your final answer to the nearest whole 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%.) % Req 1 Req 2 Req 3A Req 3B Would the company want Derrick to pursue this investment opportunity? OYes No