Merrill Corp. has the following information available about a potential capital investment: Initial investment $ 900,000 Annual net income $ 90,000 Expected life 8 years Salvage value $ 100,000 Merrills cost of capital 7 % Assume straight line depreciation method is used. Required: 1. Calculate the projects net present value. 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 7 percent. 3. Calculate the net present value using a 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 14 percent.