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

$[[$Initial investment$=1,500,000$

annual net income $=150,000$

expected life$=8$ years

salvagee value$=160,000$

merrill' s cost of capital$=10$

assume straight line depreciation method is used

Merrill's cost of capital

$10$

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 $$1,$ Present Valu Annuity of $$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 $10$ percent.

Calculate the net present value using a $13$ percent discount rate. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Ann 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 $13$ percent.

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

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 dollars

$2.$ Without making any calculations, determine whether the internal rate of return $($IRR$)$ is more or less than $10$ percent.

Net Present Value

Internal Rate of Return $($IRR$)$