Merrill Corp. has the following information available about a potential capital investment:

Initial investment	$	2,300,000
Annual net income	$	180,000
Expected life		8	years
Salvage value	$	190,000
Merrills cost of capital		8	%

Required: 1. Calculate the projects net present value. (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.)

2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 8 percent. Less than 8 Percent Greater than 8 Percent

3. Calculate the net present value using a 11 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.)

4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 11 percent. More than 11 percent Less than 11 percent Equal to 11 percent