Chapter 11 Homework Saved 6 Merrill Corp. has the following information available about a potential capital investment 136 points Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $2,500,000 $ 160,000 year's $ 170,000 7 book 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 Ate Complete this question by entering your answers in the tabs below. Print References Reg 1 and 2 and 4 1. Calculate the project's net present value. (Future Value of si 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 2 Net Present Vakie Internal Rate of Retum (IRR) Req 3 and 4 > Chapter 11 Homework Saved 6 Merrill Corp. has the following information available about a potential capital investment 136 points Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $2.500.000 $ 160,000 3 years $ 170,000 7 Book 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 retum (IRR) is more or less than 9 percent Hint AGE Complete this question by entering your answers in the tabs below. Prim Reg1 and 2 Reg 3 and 4 References 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 appropriate factor(s) from the tables provided. Do not round Intermediate calculations. Round the final answer to nearest whole dollar) 4. Without making any calculations, determine whether the internal rate of return (IRR) in more or less than 9 percent Show less 3 Net Present Value Internal Rate of Return (IRR) 4