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 capital) 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 (ROI), which has exceeded 22% each of the last three years. Click here to view Exhib138_1 to determine the appropriate discount factor(s) using table. 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 that 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 16%, calculate the net present value of the store manager's investment opportunity (Do not round your intermediate calculations and round your final answer to the nearest whole number) Not present value 21 Pro Next > EXHIBIT 18-1 Present Value of t 10% Periods 4% 5N EN 7% 8% 9% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23 24 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0820 0.813 08 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.6 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.5 4 0855 0.823 0.792 0.763 0.735 0.708 0.683 0659 0.636 0.613 0.592 0.572 0.552 0.534 0,516 0.499 0482 0.467 0.451 0437 04 5 0.822 0.784 0.747 0713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0402 0,386 0.370 0.355 02 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0 390 0.370 0.352 0.335 0.319 0.303 0.209 02 7 0.760 0711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0,354 0.333 0,314 0.296 0.279 0.263 0.249 0.235 0.2 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0 233 0.218 0 204 0.191 01 9 0.703 0.845 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0 284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.1 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0176 0.162 0.149 0.137 0.126 0.1 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0 162 0.148 0,135 0.123 0.112 0.103 0.0 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0231 0.208 0.187 0,168 0.152 0.137 0.124 0,112 0.102 0.092 0.083 0.0 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0 204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.0 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0078 0.069 0.062 0055 0.0 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.0 16 0.534 0.458 0 394 0.339 0.292 0252 0.218 0.188 0.163 0141 0.123 0.107 0.093 0.081 0.071 0062 0054 0.047 0,042 0.035 00 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0110 0 146 0.125 0 108 0.093 0.000 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.02 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0038 0032 0.028 0024 0.0 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0,023 0.020 0.0 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0124 0.104 0087 0.073 0.061 0.051 0.043 0.037 0.031 0.025 0.022 0,019 0.016 0.0 21 0.439 0.359 0.294 0 242 0.199 0.164 0.135 0 112 0093 0.077 0.064 0.053 0.044 0.037 0.031 0.025 0.022 0018 0.015 0.013 0.01 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0083 0068 0056 0.046 0.038 0.032 0.026 0.022 0.018 0,015 0,013 0.011 0.00 23 0.406 0.326 0.262 0.211 0.170 0.13 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0012 0.010 0.009 0.00 24 0.390 0310 0.247 0.197 0.158 0.126 0102 0.002 0.066 0053 0.043 0.035 0.028 0.023 0019 0015 0.013 0.00 0.008 0.007 0.00 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0074 0.059 0.047 0.038 0.030 0.024 0.020 0016 0.013 0010 0.009 0.007 0.006 0.00 0.361 0.281 0.220 0.172 0.135 0.106 0084 0066 053 0042 0033 0026 0.021 0.017 0014 0011 009 0.007 0.006 0.00 0.00 27 0.147 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0037 0029 0023 0.018 0014 0011 0009 0.007 0.006 0.005 0.004 0,00 25 0.333 0.255 0.96 0.150 0 116 0090 0.069 0.054 0042 0033 0.025 0.020 0,015 0,012 0010 0.008 0.0060005 0.004 0.003 0.00 0.321 0243 0.185 0 141 0 107 0082 0063 0.048 0.037 0.029 0022 017 0014 0011 0008 0.005 0.005 0.004 0.000 0.002 0.00 30 3dB 0.231 0.174 0431 0.099 0.075 0057 0044 003 0026 0.0200.015 012 000 000 0005 0,004 0.003 0.003 0.002 000 0208 0,142 0.097 0067 0046 0.032 0.022 0015 0.011 000 000 0004 0.003 0.00 0.00 og 0.001 0.000 0.000 0.000 0.00