Merrill Corp. has the following information available about a potential capital investment Initial investment Annual net income Expected life Salvage value Merril's cost of capital $ 900,000 $ 90,000...

Merrill Corp. has the following information available about a potential capital investment

Extracted text: Merrill Corp. has the following information available about a potential capital investment Initial investment Annual net income Expected life Salvage value Merril's cost of capital $ 900,000 $ 90,000 8 years $ 100,000 78 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.