Exercise $12-9($Algo$)$ Net Present Value Analysis and Simple Rate of Return $[$LO$12-2,$ LO$12-6]$

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 $25\%$ each of the last three years. Derrick is considering a capital budgeting project that would require a $$4,900,000$ investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is $18\%.$ The project would provide net operating income each year for five years as follows:

$\backslash$table$[[$Sales$,,\backslash$table$[[$$$4,200,000$