Star City is considering an investment in the community center that is expected to return the following cash flows: Use Present Value of $1 Table

Year	Net Cash Flow
1	$	25,000
2		55,000
3		85,000
4		85,000
5		105,000

This schedule includes all cash inflows from the project, which will also require an immediate $205,000 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.)

b. What is the net present value of the project if the appropriate discount rate is 15 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.)