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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 1

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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 1 2 Net Cash Flow $ 22,000 52,000 82,000 82,000 3 4 5 102,000 This schedule includes all cash inflows from the project, which will also require an immediate $202,000 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? b. What is the net present value of the project if the appropriate discount rate is 10 percent? Complete this question by entering your answers in the tabs below. Required A Required B 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

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