Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $59.904 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $312,000 5 years $102,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.) es 1. Accounting Rate of Return Payback Period 2 I years 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 $2,200,000 $ 190,000 8 years $ 200,000 8% 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 8 percent. 3. Calculate the net present value using a 12 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 12 percent. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 and 4 1. Calculate the project's net present value. (Future Value of $1, Present Value Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provide Round the final answer to nearest whole dollar.) 2. Without making any calculations, determine whether the internal rate of return 1 Net Present Value Internal Rate of Return (IRR) 2 Req 3 and 4