rate of return of at least $12\%,$ will the games be purchased?

EXERCISE $13-9$ Net Present Value Analysis and Simple Rate of Return LO$13-2,$ LO$13-6$

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 $20\%$ each of the last three years. Derrick is considering a capital budgeting project that would require a $$3,000,000$ investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is $15\%.$ The project would provide net operating income each year for five years as follows:

$\backslash$table$[[\backslash$table$[[$Sales $............],[$Variable expenses$]],\backslash$table$[[\backslash$table$[[$$$2,500,000$