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2 25 ebook Het References Merrill Corp, has the following information available about a potential capital investment Initial investment Annual net Income Expected life Salvage value Herrill's cost of capital Reg 1 and 2 Reg3 and 4 $ 800,000 $10,000 $ 90,000 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 7 percent 3. Calculate the net present value using a 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 14 percent. years Complete this question by entering your answers in the tabs below. 1 2 7% Net Present Value Internal Rate of Retum (IRR) 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 7 percent. Show less& 313,876 Req 3 and 4 > 2 25 pones Dook 4 Hint Print References Merrill Corp. has the following information available about a potential capital investment Initial investment Annual net income Expected life Salvage value Merrill's cost of capital. Reg 1 and 2 Reg 3 and 4 $ 500,000 $ 50,000 8 years 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 7 percent. 3. Calculate the net present value using a 14 percent discount rate. 4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 14 percent. 3 $90,000 Complete this question by entering your answers in the tabs below. Net Present Value Internal Rate of Retum (IRR) 7% 3. Calculate the net present value using a 14 percent discount rate. (Future Value $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) 4. Without making any calculations, determine whether the Internal rate of return (IRR) is more or less than 14 percent. Show less A