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2 Merrill Corp. has the following information available about a potential capital investment: Initial Investment Annual net income Expected life Salvage value Merrill's cost of

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2 Merrill Corp. has the following information available about a potential capital investment: Initial Investment Annual net income Expected life Salvage value Merrill's cost of capital $2,500,000 $ 160,000 yoare $ 170,000 70 Book Hint Print References Assume straight line depreciation method is used. Required: 1. Calculate the project's net present value, 2. Without making any calculations, determine whether the internal rate of return (IRR) Is more or less than 7 percent. 3. Calculate the net present value using a 9 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 9 percent. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 and 4 1. Calculate the project's not present value (Future Value of $1. Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use a propriate factor(s) from the tables provided. Do not round intermediate calculations Round the final answer to nearest whole dollar) 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 7 percent. Show less 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 9 percent. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req 3 and 4 1. Calculate the project's net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round Intermediate calculations. Round the final answer to nearest whole dollar.) 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 7 percent. Show less 1. Net Present Value 2 Internal Rate of Return (IRR) Req 3 and 4 > 4. Without making any calculations, determine whether the internal Paleo! Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req 3 and 4 3. Calculate the net present value using a 9 percent discount rate. (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropridte factor(s) from the tables provided. Do not round intermediate calculations. Round the final answer to nearest whole dollar) 1. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 9 percent. Show less 3 Net Present Value Internal Rate of Return (IRR) 4

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