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

Initial investment	$	600,000
Annual net income	$	60,000
Expected life		8	years
Salvage value	$	70,000
Merrills cost of capital		7	%

Assume straight line depreciation method is used.

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.)

3. Calculate the net present value using a 14 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.)