Exercise 14-9 (Algo) Net Present Value Analysis and Simple Rate of Return [LO14-2, LO14-6] Derrick lverson 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 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $4,200,000 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 foliows: Click here to view Exhibit 148-1 and Exhibit 148.2, to determine the appropriate discount factoris) ising tables. Required: 1. Compute the project's net present value. 2. Compute the project's simple rate of retum. 30. Would the company want Derrick to pursue this imvestment opportunity? 36. Would Derrick be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Compute the Brojects net present value. (Round vour final answer to the neareut vhoie doilar ambunt) Complete this question by entering your answers in the tabs below. Compute the project's net present value. (Round your final answer to the nearest whole dollar amount. 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%.) 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