Present Value of Cash Flows: KPIV Television is considering investment in a new show that is expected to return the following cash flows from syndication:

This schedule includes all cash flows from the project. The project will require an immediate cash outlay at Time of $5 million. KPIV is tax exempt.

Required:

a. Complete the following schedule to determine the net present value of the project if the appropriate discount rate is 25 percent.

b. Complete the following net present value schedule for the project if the appropriate discount rate is 20 percent.

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12345 Year Net Cash Flow ($000 omitted) $1,500 1,700 2,400 2,000 1,200