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

Initial investment $ $1,600,000$

Annual net income $ $250,000$

Expected life $8$ years

Salvage value $ $350,000$

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 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 $($expression error$)$ percent.

Calculate the net present value using a $($expression error$)$ 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 $($expression error$)$ percent.