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rick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on estment (ROI), which has

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rick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on estment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would quire a $4,480,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 6. The project would provide net operating income each year for five years as follows: Click here to view Exhibit 1281 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 Derrick to pursue this investment opportunity? 3b. Wouid Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. 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? 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%.) 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? Complete this question by entering your answers in the tabs below. Would the company want Derrick to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Would Derrick be inclined to pursue this investment opportunity

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