Merrill Corporation has the following information available about a potential capital Investment: Initial investment Annual net income Expected life Salvage value Merrill's cost of capital Assume straight line depreciation method is used. Required: 1. Calculate the project's net present value. (Future Value of $1,Present Value of $1, Future Value Annulty of $1, Present Value Annulty of $1.) $ 2,100,000 $ 200,000 8 years $ 210,000 10 Note: Use appropriate factor(s) from the tables provided. 2. Without making any calculations, determine whether the Internal rate of return (IRR) is more or less than 10 percent. 3. Calculate the net present value using a 13 percent discount rate. (Future Value of $1, Present Value of $1, Future Value Annulty of $1, Present Value Annulty of $1.) Note: Use appropriate factor(s) from the tables provided. 4. Without making any calculations, determine whether the Internal rate of return (IRR) is more or less than 13 percent. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 and 4 1. Calculate the project's net present value. Note: 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 10 percent. 1. Net Present Value 2. Internal Rate of Return (IRR) More than 10 Percent Reg 1 and 2 Req 3 and 4 >

Mernil Corporation has the followng information avallable about a potential capital investment: Assume straight line depreciation method is used. Requlred: 1. Calculate the project's net present value (Euture Value of S1, Present Volue of \$1. Future Value Annuty of \$1. Present Value Annuly of 51 .) Note: Use approprlate factor(s) from the tables provided. 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 10 percent. 3. Calculate the net present value using a 13 percent discount rate. (Eusure Value of S1, Present Value of \$1. Euture Volve Annuliry of $1. Present Value Annuty of $1 ) Note: Use opproprlate factor(s) from the tables provided. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 13 percent. Complete this question by entering your answers in the tabs below. 1. Calculate the project's net present value. Note: 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 10 percent. TABLE 11.1A Future Value of $1 TABLE 11.2A Present Value of $1 TABLE 11.3A Future Value of an Annuity of $1 TABLE 11.4A Present Value of Annuity of $1