Exercise 14-9 (Algo) Net Present Value Analysis and Simple Rate of Return [LO14-2, LO14-6] 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 requiring a $4,650,000 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: Sales Variable expenses Contribution margin. Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 745,000 930,000 $ 4,000,000 1,750,000 2,250,000 Depreciation Total fixed expenses Net operating income Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the project's net present value. 2. Compute the project's simple…

Please answer all questions. I would hate to use another question because of 1 extra part.   Problem 12-17 (Algo) Net Present Value Analysis; Internal Rate of Return; Simple Rate of Return [LO12-2, LO12-3, LO12-6] Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 22% each of the last three years. Casey is considering a capital budgeting project that would require a $3,900,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company’s discount rate is 18%. The project would provide net operating income each year for five years as follows:   Sales   $ 3,800,000 Variable expenses   1,760,000 Contribution margin   2,040,000 Fixed expenses:     Advertising, salaries, and other fixed out-of-pocket costs $ 740,000   Depreciation 780,000   Total fixed expenses   1,520,000 Net operating income   $ 520,000   Click here to…

The following information is provided.   Project                            Income                         Investment A                                      P33,000                        P300,000 B                                      P56,250                        P750,000 C                                      P27,500                        P550,000   Assume the division's current ROI is 10% and the firms minimum required rate of return is 7%.   If you were the president of the company, which projects would you want the division manager to accept? a. A, B and C       b. A and C       c. A and B       d. A only       e. B only.