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

Initial investment $ $2,100,000$

Annual net income $ $200,000$

Expected life $8$ years

Salvage value $ $210,000$

Merrill$$s cost of capital $10$

Assume straight line depreciation method is used.

Required:

$1.$ Calculate the project$$s net present value.

Note: Use appropriate factor$($s$)$ from the tables provided.

$2.$ Calculate the net present value using a $13$ percent discount rate.

Note: Use appropriate factor$($s$)$ from the tables provided.