E11-3 (Algo) Calculating Net Present Value, Internal Rate of Return (LO 11-3, 11-4) 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 $ 700,000 70,000 8 years $ 80,000 7% 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 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 14 percent. Answer is complete but not entirely correct. 3. Calculate the net present value using a 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 14 percent. Answer is complete but not entirely correct. 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. 2 Net Present Value Internal Rate of Return (IRR) 147,5003 Greater than 7 Percent Req 1 and 2 Req 3 and 4 > Retu 3. Calculate the net present value using a 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of retur (IRR) is more or less than 14 percent. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rea 1 and 2 Req3 Ind 4 3. Calculate the net present value using a 14 percent discount rate (Future Value of $1. Present Value of $1, Future Value Annuity of S1, 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) is more or less than 14 percent. Show less 3 Net Present Value Internal Rate of Return (IRR) 4 12.277 More than 14 percent