Merrill Corp. has the following information available about a potential capital investment Initial investment Annual net income $2,600,000 $ 150,000 Expected life 8 years Salvage value. $ 160,000 Merrill's cost of capital 6% 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 (RR) is more or less than 6 percent 3. Calculate the net present value using a 8 percent discount rate 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 8 percent