3. .. ons Merrill Corp. has the following information available about a potential capital investment Initial...

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3. .. ons 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 $1,500,000 150,000 160,000 10% 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 3. Calculate the net present value using a 13 percent discount rate. 4. Without making any calculations, determine whether the internal rate of retum is more or less than 10 percent is more or less then 13 percent 3. .. ons 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 $1,500,000 150,000 160,000 10% 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 3. Calculate the net present value using a 13 percent discount rate. 4. Without making any calculations, determine whether the internal rate of retum is more or less than 10 percent is more or less then 13 percent