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6. value: 2.85 points Star City is considering an investment in the community center that is expected to return the following cash flows: Use Exhibit

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6. value: 2.85 points Star City is considering an investment in the community center that is expected to return the following cash flows: Use Exhibit A.8. Year Net Cash Flow $ 27,000 57,000 87,000 87,000 107,000 This schedule includes all cash inflows from the project, which will also require an immediate $207,000 cash outlay. The city is tax-exempt; therefore, taxes need not be considered. Required: a. What is the net present value of the project if the appropriate discount rate is 20 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) Net present value b. What is the net present value of the project if the appropriate discount rate is 10 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) Net present value

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