Ironwood Charities is considering an investment in one of their buildings that is expected to return the following cash flows: Use Exhibit A.8. Year Net Cash Flow 1 $ 12,000 2 24,000 3 40,000 4 55,000 5 45,000 This schedule includes all cash inflows from the project, which will also require an immediate $140,000 cash outlay. The organization is tax-exempt; therefore, taxes need not be considered. Required:

What is the net present value of the project if the appropriate discount rate is 8 percent? ( -5,507 is incorrect)

What is the net present value of the project if the appropriate discount rate is 4 percent? (13,289 is incorrect)

Exhibit A.8

Present Value of $1

Year	1/2%	1%	2%	4%	5%	6%	8%	10%	12%	14%	15%	16%	18%	20%	22%	24%	25%	30%	35%	40%
1	0.995	0.990	0.980	0.962	0.952	0.943	0.926	0.909	0.893	0.877	0.870	0.862	0.847	0.833	0.820	0.806	0.800	0.769	0.741	0.714
2	0.990	0.980	0.961	0.925	0.907	0.890	0.857	0.826	0.797	0.769	0.756	0.743	0.718	0.694	0.672	0.650	0.640	0.592	0.549	0.510
3	0.985	0.971	0.942	0.889	0.864	0.840	0.794	0.751	0.712	0.675	0.658	0.641	0.609	0.579	0.551	0.524	0.512	0.455	0.406	0.364
4	0.980	0.961	0.924	0.855	0.823	0.792	0.735	0.683	0.636	0.592	0.572	0.552	0.516	0.482	0.451	0.423	0.410	0.350	0.301	0.260
5	0.975	0.951	0.906	0.822	0.784	0.747	0.681	0.621	0.567	0.519	0.497	0.476	0.437	0.402	0.370	0.341	0.328	0.269	0.223	0.186
6	0.971	0.942	0.888	0.790	0.746	0.705	0.630	0.564	0.507	0.456	0.432	0.410	0.370	0.335	0.303	0.275	0.262	0.207	0.165	0.133
7	0.966	0.933	0.871	0.760	0.711	0.665	0.583	0.513	0.452	0.400	0.376	0.354	0.314	0.279	0.249	0.222	0.210	0.159	0.122	0.095
8	0.961	0.923	0.853	0.731	0.677	0.627	0.540	0.467	0.404	0.351	0.327	0.305	0.266	0.233	0.204	0.179	0.168	0.123	0.091	0.068
9	0.956	0.914	0.837	0.703	0.645	0.592	0.500	0.424	0.361	0.308	0.284	0.263	0.225	0.194	0.167	0.144	0.134	0.094	0.067	0.048
10	0.951	0.905	0.820	0.676	0.614	0.558	0.463	0.386	0.322	0.270	0.247	0.227	0.191	0.162	0.137	0.116	0.107	0.073	0.050	0.035
11	0.947	0.896	0.804	0.650	0.585	0.527	0.429	0.350	0.287	0.237	0.215	0.195	0.162	0.135	0.112	0.094	0.086	0.056	0.037	0.025
12	0.942	0.887	0.788	0.625	0.557	0.497	0.397	0.319	0.257	0.208	0.187	0.168	0.137	0.112	0.092	0.076	0.069	0.043	0.027	0.018
13	0.937	0.879	0.773	0.601	0.530	0.469	0.368	0.290	0.229	0.182	0.163	0.145	0.116	0.093	0.075	0.061	0.055	0.033	0.020	0.013
14	0.933	0.870	0.758	0.577	0.505	0.442	0.340	0.263	0.205	0.160	0.141	0.125	0.099	0.078	0.062	0.049	0.044	0.025	0.015	0.009
15	0.928	0.861	0.743	0.555	0.481	0.417	0.315	0.239	0.183	0.140	0.123	0.108	0.084	0.065	0.051	0.040	0.035	0.020	0.011	0.006