Merill Corp has the following info available about a possible capitol investment. Initial Investment- $1,200,000 Annual Net Income- $120,000 Expected Life- 8 years Salvage Value- $130,000 Merril's cost of Capitol- 10% Assume Strait line depreciation method is used. 1. Calculate the projects net present value. (Future value $1, Present value $1, Future Value Annuity $1, Present Vaule Annuity $1) Do not round intermediate calculations, round final answer to nearest whole dollar
Merill Corp has the following info available about a possible capitol investment.
Initial Investment- $1,200,000
Annual Net Income- $120,000
Expected Life- 8 years
Salvage Value- $130,000
Merril's cost of Capitol- 10%
Assume Strait line
1. Calculate the projects
2. Calculate nthe net present value using a 13% discpount rate. (Future value $1, Present value $1, Future Value Annuity $1, Present Vaule Annuity $1) Do not round intermediate calculations, round final answer to nearest whole dollar
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