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Natalie Kane is a regional manager for Flexsteel Industries which manufactures furniture. Her annual salary increases are based on her region's return on investment (ROI),

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Natalie Kane is a regional manager for Flexsteel Industries which manufactures furniture. Her annual salary increases are based on her region's return on investment (ROI), which has been above 25% for the past few years. Natalie is analyzing a capital budgeting project that would require a $5,150,000 investment in equipment with a useful life of five years and no salvage value Flexsteel Industries' discount rate is 17%. The project would provide net operating Income each year for five years as follows: $4,388,888 1,900,000 2,400,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 765,000 1,030,000 1,495,000 $ 605,000 Click here to view Exhibit 128-1 and Exhibit 128-2. 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 Natalie to pursue this investment opportunity? 3b. Would Natalie be inclined to pursue this investment opportunity? Required: 1. Compute the project's net present value 2. Compute the project's simple rate of return 3a. Would the company want Natalie to pursue this investment opportunity? 3b. Would Natalie be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 38 Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Not present value R1 Req2 > Required: 1 Compute the project's net present value. 2. Compute the project's simple rate of return 3a. Would the company want Natalie to pursue this investment opportunity? 3b. Would Natalie be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 3B 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 % Required: 1. Compute the project's net present value. 2 Compute the project's simple rate of return 3a. Would the company want Natalie to pursue this investment opportunity? 3b. Would Natalie be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 38 Would the company want Natalie to pursue this investment opportunity? Yes No Required: 1 Compute the project's net present value. 2. Compute the project's simple rate of return 3a. Would the company want Natalie to pursue this investment opportunity? 3b. Would Natalie be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Req3B Would Natalie be inclined to pursue this investment opportunity? Yes ONO

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