Wt Uisney World Disney Family Vacat.. Turbo Tax University mework Help S Exercise 12.9 Net Present Value Analysis and Simple Rate of Return [LO12-2, L012-61 Derrick Iverson is a divisional manager for Holston Company His annual pay raises are la investment (RO), which has been above 20% each of the la require a $4,160,000 19% The project would provide net operating income each year for five years as follows: rgely determined by his division's return on st three years. Derrick is considering a capital budgeting project that would rate is Sales Varlable expenses Contribution sargin Fixed expenses: 3,700,0e Advertising, salarles, and other ixed costs ,of 'pocket 718,600 Depreciation otal fxed expenses Net operating income 1:542,0 558,000 Click here to view Exhibit 128-1 and Eshibit 128-2, to determine the appropriate discount factorts) 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 ae 6 mework Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 718,089 832,80 Total fixed expenses 1,542,89e 5 558,0ee Net operating income e to view Exhibit 128-1 and Exhibt 128-2, to determine the appropriate discount factors) using tables Click here Required: 1. Compute the project's net present value. 2 Compute the projects simple rate of return 3a. Would the company want Derrick to pursue this investment opportunity? 3b. Would Derick be inclined to pursue this investment opportunity? Complete this question by entering your answers in thet abs below Rea 1 Reg 3A Reg 38 Req 2 Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) lor 6 ill Next > 9 6 8 work Saved Total fixed expenses 1,542,00e $ 558,eee Net operating income Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factoris) 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, would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below Rea 1 Req 2 Req 3A Req 3B Compute the project's simple rate of return. (Round your answer to 1 decimal place Le. o.123 should be considered as 12.3%.) Req 1 Req 3A ) Next 8 6 8 9 Saved mework Total fixed expenses Net operating income 1,542,e00 $ 558,0ee the appropriate discount factors) using tables. Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine Required: 1. Compute the projects net present value 2. Compute the projects 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 Req1 Req 3B d the company want Derrick to pursue this investment Woul opportunity? No Req 38 3> 1 of 6 BlI Next> 8 9 0 5 Total fixed expenses Net operating income 1,542,00e $ 558,000 Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factorts) 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. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below Rea 1 Req 2 Req 3A Req 3B Would Derrick be indlined to pursue this investment opportunity? Next > 1 of 6 8 9
