Simmons Company is a merchandiser with multiple store locations. lCine of its store managers is considering a shift in her store's product mix in anticipation of a strengthening economy. Her store would invest $800,000 in more expensive merchandise {an increase in its working ca pital] with the expectation that it would increase annual sales and variable expenses by $400,000 and $250,000, respectively, for three years. At the end of the three-year period, the store manager believes that the economic surge will subside; therefore, she will release the additional investment in working capital. The store manager's pay raises are largely determined by her store's return on investment{RO|}, which has exceeded 22% each ofthe last three years. Click here to view Exhibit 78-1 and Exhibit 78-2 to determine the appropriate discount factorts} using table. Note: Use appropriate facts-\"(5} from the tables provided. Required: 1. Assuming the company's discount rate is 16%, calculate the net present value of the store manager's investment opportunity. 2. Calculate the annual margin, turnover, and return on investment {ROI} provided by the store manager's investment opportunity. 3. Assuming the company's minimum required rate of return is 16%, calculate the residual income earned by the store manager's investment opportunity for each of years 1 through 3. 4. Do you think the store manager would choose to pursue this investment opportunity? Do you think the company would want the store manager to pursue it? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company's discount rate is 15%, calculate the net present value of the store manager's investment opportunity. Note: Round discount factor(s) to 3 decimal places. Do not round your intermediate calculations and round your nal answer to the nearest whole number. Required 2 > Simmons Company is a merchandiser with multiple store locations. One of its store managers is considering a shift in her store's product mix in anticipation of a strengthening economy. Her store would invest $800,000 in more expensive merchandise [an increase in its working ca pital] with the expectation that it would increase annual sales and variable expenses by $400,000 and $250,000, respectively, for three years. At the end of the threeyear period, the store manager believes that the economic surge will subside; therefore, she will release the additional investment in working capital. The store manager's pay raises are largely determined by her store's return on investment {ROI}, which has exceeded 22% each of the last three years. Click here to view Exhibit 78-1 and Exhibit 78-2 to determine the appropriate discount factors} using table. Note: Use appropriate factorts} from the tables provided. Req uired: 1. Assuming the company's discount rate is 16%, calculate the net present value of the store manager's investment opportunity. 2. Calculate the annual margin, turnover, and return on investment (ROI) provided bythe store manager's investment opportunity. 3. Assuming the company's minimum required rate of return is 16%, calculate the residual income earned by the store manager's investment opportunity for each of years '1 through 3. 4. Do you think the store manager would choose to pursue this investment opportunity? Do you think the company would wantthe store manager to pursue it? Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Required 4 Calculate the annual margin, turnover, and return on investment (ROI) provided by the store manager's investment opportunity. Note: Round your answers to 2 decimal places. _l_l_ on _e_o_ as ( Required1 Required )