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
Merrills cost of capital	10

Assume straight line depreciation method is used.

Required:

1. Calculate the projects 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.

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

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