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

Initial investment $ $2,500,000$

Annual net income $ $160,000$

Expected life $8$ years

Salvage value $ $170,000$

Merrill$$s cost of capital $7$

Assume straight line depreciation method is used.

Required:

Calculate the project$$s net present value. $($Future Value of $$1,$Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

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

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $7$ percent.

Calculate the net present value using a $9$ percent discount rate. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

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

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $9$ percent.Merrill Corporation has the following information available about a potential capital investment:

Assume straight line depreciation method is used.

Required:

Calculate the project's net present value. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value

Annuity of $$1.)$

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

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $7$ percent.

Calculate the net present value using a $9$ percent discount rate. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$

Present Value Annuity of $$1.)$

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

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $9$ percent.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Req $1$ and $2,$Req $3$ and $4]]$

Calculate the project's net present value.

Note: Do not round intermediate calculations. Round the final answer to nearest whole dollar.

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $7$ percent.

Req $1$ and $2$

Req $3$ and $4$

Calculate the net present value using a $9$ percent discount rate.

Note: Do not round intermediate calculations. Round the final answer to nearest whole dollar.

Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $9$ percent.