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Star City is considering an investment in the community center that is expected to return the following cash flows. Use Exhib.A.B. Year 1 2. 3

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Star City is considering an investment in the community center that is expected to return the following cash flows. Use Exhib.A.B. Year 1 2. 3 4 5 Net Cash Flow $ 25,000 55,000 85,000 85,000 105,000 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? b. What is the net present value of the project if the appropriate discount rate is 15 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 25 percent? (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign.) Not present value This schedule includes all cash inflows from the project, which will also require an immediate $ 205,000 cash outlay. The city in 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? b. What is the net present value of the project if the appropriate discount rate is 15 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 15 percent? (Round PV factor to 3 decimal places) Net present value

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