3 Corner Restaurant is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first three years Starting in Year 4 the project will produce cash inflows of $151,000 a year for three years. This project is nisky, so the firm has assigned it a discount rate of 18 6 percent. 4 Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $2.8 million. If the building is remodeled Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next five years. The discount rate is 12,5 percent