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Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $1,400,000 $ 140,000 8 years $ 150,000 10% Assume straight line depreciation

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Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $1,400,000 $ 140,000 8 years $ 150,000 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 (IRR) is more or 3. Calculate the net present value using a 13 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or 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 of $1, Future Value Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round inter 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 th 1. Net Present Value Internal Rate of Return (IRR) 2. Expected life Salvage value Merrill's cost of capital 8 years $ 150,000 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 (IRR) is more or les 3. Calculate the net present value using a 13 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 and 4 3. Calculate the net present value using a 13 percent discount rate. (Future Value of $1, Present Value o Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. 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 3. Net Present Value Internal Rate of Return (IRR)

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