# Merrill Corp. has the following information available about a potential capital investment:\$1,200,000\$ 120,0008 yearsInitial investmentAnnual net incomeTExpected lifeSalvage valueMerrill's cost of capital130,00010%Assume straight line depreciation method is used.GiоRequired: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 tablesprovided. Do not round intermediate calculations. Round the final answer to nearest whole dollar.)Net Present ValueTATRR) is mor less than 10 percent.2. Without making any calculations, determine whether the internal rate of returnGreater than 10 PercentLess than 10 Percent3. Calculate the net present value using a 13 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 answer to nearest whole dollar.)Net Present Value

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