Question: I need help with this question please....................... Merrill Corp . has the following information available about a potential capital investment . Initial investment $ 1,

 I need help with this question please....................... Merrill Corp . hasthe following information available about a potential capital investment . Initial investment

I need help with this question please.......................

$ 1, 800, 000 Annual net income $ 200, 000 Expected life*8 years Salvage value* $ 240, 000 Merrill's cost of capital 10%

Merrill Corp . has the following information available about a potential capital investment . Initial investment $ 1, 800, 000 Annual net income $ 200, 000 Expected life* 8 years Salvage value* $ 240, 000 Merrill's cost of capital 10% Assume straight line depreciation method is used. Required :` 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 ! Net Present Value 2 . Without making any calculations , determine whether the internal rate of return (IRR ) is more of less than TO percent ~` Less than 10 Percent ` Greater than 10 Percent3 . Calculate the net present value using a 15 percent discount rate . ( Future Value of $1 . Present Value of $1 . Future Value Annuity of $1. Present Value Annuity of $1. ) ( Use appropriate factor ( 5 ) from the tables provided . Do not round intermediate calculations . Round the final answer to nearest whole dollar . ) Net Present Value 4 . Without making any calculations , determine whether the internal rate of return ( 1RR ) is more or less than 15 percent . More than 15 percent ( Less than 15 percent O Equal to 15 percent

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