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Star City is considering an investment in the community center that expected to retum the following cash flows: Use Exhibit A8 Net Cash Flow S
Star City is considering an investment in the community center that expected to retum the following cash flows: Use Exhibit A8 Net Cash Flow S 23.000 Year 83 000 83.000 4 103.000 This schedule includes all cash inflows from the project, which will also require an immediate $203,000 cash outlay. The city is tax-exempt; therefore, taxes need not be considered. Required: a. What the net present value of the project if the appropriate discount rate is 22 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) Net present value the net present value of the project if the appropriate discount rate is 12 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) b. What Net present value
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