Question: 1. calculate the projects net present value. 2. without making any calculations, determine wherher the internal rate of return is more or less than 8%

2 Merrill Corp has the following information available about a potential capital investment 25 DO Initial Investment Annual net income Expected life Salvage value Herrlil's cost of capital 52,200,000 $ 100.000 8 years $ 200,000 Assume straight line depreciation method is used Required: 1. Calculate the project's net present value 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 8 percent 3. Calculate the net present value using a 12 percent discount rate 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 12 percent 0 Deferences Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 and 4 1. 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.) (Use appropriate factor(s) from the tables provided. Do not round Intermediate calculations Round the final answer to nearest whole dollar) 2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 8 percent. Show less 1 Net Present Value Internal Rate of Return (IRR) 2 Rent Req 3 and 4 > Merrill Corp. has the following information available about a potential capital investment 25 points Initial investment Annual net income Expected life Salvage value Herrill's cost of capital $2,200,000 $ 190,000 3 years $ 200.000 8% eBook Assume straight line depreciation method is used. Required: 1. Calculate the project's net present value. 2 Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 8 percent 3. Calculate the net present value using a 12 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 12 percent. Print References Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 and 4 3. Calculate the net present value using a 12 percent discount rate. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations, Round the final and wer to nearest whole dollar.) 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 12 percent. Show less 3 Net Present Value Internal Rate of Return (IRR) 4
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