FV1$ (8yrs, 7%) = 1.7182

PV1$ (8yrs, 7%) = 0.5820

FV Annuity (8yrs, 7%) = 10.2598

PV Annuity (8yrs, 7%) = 5.9713

Merrill Corp. has the following information available about a potential capital investment: $2,500,000 $ 160,000 Initial investment Annual net income Expected life Salvage value Merrill's cost of capital 8 years $170,000 7% Assume straight line depreciation method is used. Required: 1. Calculate the project's net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Prese tables provided. Do not round intermediate calculations. Round the final answer to nearest whole dollar.) ntalue Annuity of $1 (Use appropriate factor(s) from the Net Present Value 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 7 percent. Greater than 7 Percent Less than 7 Percent 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.) Net Present Value