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A-12 Present Value of Cash Flows Star City is considering an investment in the community center that is expected to return the following cash flows:

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A-12 Present Value of Cash Flows Star City is considering an investment in the community center that is expected to return the following cash flows: Use Exhibit A.8. YearNet Cash Flow $30,000 60,000 90,000 90,000 110,000 This schedule includes all cash inflows from the project, which will also require an immediate $210,000 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 25 percent? (Round PV factor to 3 decimal places Negative amount should be indicated by a minus sign) et prosent value b. What is the net present value of the project if the appropriate discount rate is 16 percent? (Round PV factor to 3 decimal places Nogative amount should be indicated by a minus sign) Net present value

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