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 $5,170,000 investment in equipment with a useful life of five years and no salvage value. Hoiston Company's discount rate is 19%. The project would provide net operating income each year for five years as follows: $4,500,000 2,000,000 2,500,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 780,000 1,034,000 1,814,000 $686,000 Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factors) 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? 36. Would Derrick be inclined to pursue this investment opportunity? tha tabe below Complete this question by entering your answers in the tabs below. Reg 1 Req2 Reg 3A Reg38 Compute the project's net present value. (Round your final answer to the nearest whole dollar amount.) Net present Value Req2 Complete this question by entering your answers in the tabs below. Reg 1 Reg JA Reg 38 Meg 2 Compute the project's simple rate of return. (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%) Simple rate of retum % Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) 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. Reg 1 Reg 2 Reg 3A Reg 36 Would the company want Derrick to pursue this investment opportunity? Ores No Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg 3 Roya 38 Would Derrick be inclined to pursue this investment opportunity? Yes No