Merrill Corp. has the following information available about a potential capital investment: Initial investment Annual net income $ $2,100,000 200,000 Expected life 8 years Salvage value $ 210,000 Merrill's cost of capital 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 less than 10 percent. 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 than 13 percent.