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Merrill Corporation has the following information available about a potential capital investment: Assume straight line depreciation method is used. Required: 1. Calculate the project's net
Merrill Corporation has the following information available about a potential capital investment: 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 Annuity of \$1, Annuity of \$1.) 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. Present Value Annuity 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. 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)
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