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

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Finance

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

Initial investment $ 1,700,000
Annual net income $ 190,000
Expected life 8 years
Salvage value $ 250,000
Merrills cost of capital 10

%

1. Calculate the projects 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.)

3. 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(s) from the tables provided. Do not round intermediate calculations. Round the final answer to nearest whole dollar.)

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