Exercise 14-9 (Algo) Net Present Value Analysis and Simple Rate of Return [LO14-2, LO14-6] Derrick Iverson is a divisional manager for Holston Company. Derrick is considering a capital budgeting project that would require a $3,080,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 17%. The project would provide net operating income each year for five years as follows: Click here to view Exhibit 148-1 ond Exhibit 148-2, 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. 3a. Would the company want Derrick to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. 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%