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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

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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 $ 28,000 12345 58,000 88,000 88,000 108,000 This schedule includes all cash inflows from the project, which will also require an immediate $208,000 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 22 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 12 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) Net present value

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