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

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Q: how would i solve this problem

A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.