Merrill Corp. has the following information available about a potential capital investment Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $1,000, see $ 100,eee 8 years $ 110,eee 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 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