La Merced is reasonably close to the waterfalls Catarata de Bayoz and Velo de la Novia, see the Pichanaki page for details.
Banos Termales de Uchubamba, (Take the road towards Uchubamba). Thermal Pools.edit
Catarata Sanchirio, (Take the road towards Oxapampa. Near San Luis de Shuaro). Waterfalledit
Catarata del Tirol, (17km from La Merced. About 5km up a dirt road immediately after Puente San Ramon on the right hand side when travelling from Tarma to La Merced. 11° 08' 15 S 75° 19' 53 W). You need to walk for about 15 minutes up a gorge to reach the waterfall, its a fairly easy walk up a well made path.Adults S/.1.00. (-11.1375,-75.3314)edit
Catarata Tunquimayo, (Near Vitoc. Take the road towards Uchubamba). Waterfall.edit
Ducha del Diablo, (11° 10' 21 S 75° 27' 06 W). (-11.1725,-75.4517)edit
Puente Colgante Kimiri. Suspension bridge made in 1901edit
Santuario Nacional Pampa Hermosa. Tropical/subtropical jungle, waterfalls, Yungas.edit
A variety of tours have hawkers in the central plaza in the morning until about 10:00. Most of the companies offer the same options.
Perene Tour - this jungle overview tour is appropriate for all ages and abilities. It includes 2 waterfalls (you can swim at the bottom), a "native village", a coffee processor, a boat ride, and a stop for lunch. It runs about s/35 (about $15 US).
Indiana Jones Tour - not the real name, but they will know what you are talking about. This trip takes you up a creek bed with several waterfalls that you climb with a rope through the water. At times you scale wet slippery rocks without a rope. Good physical condition is highly recommended (not by them, but by me!) Some groups also have 2 guides to help you up the waterfalls. If you're nervous you may want to ask around for a 2-guide tour. s/25 (about $10 US) per person.
Discoteca Kametsa Cafe Rock - A nightclub on the outskirts of town that is hopping on Saturday nights with a fun and friendly crowd. Plays a heavily Latin mix.