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Star City is considering an investment in the community center that is expected to return the following cash flows: Year Net Cash Flow $21,000 $51,000
Star City is considering an investment in the community center that is expected to return the following cash flows: Year Net Cash Flow $21,000 $51,000 $81.000 $81,000 $101.000 This schedule includes all cash inflows from the project, which will also require an immediate $201,000 cash outlay. The city is tax-exempt; therefore, taxes need not be considered. The required rate of return is 8%. Submit before you watch the solution, then correct your answer as necessary and re-submit 1. Compute the NPV and the IRR of the investment using the PV tool in excel. Your spreadsheet should be in excel and in good form 2. Should the company invest in the project? Be sure to consider mission, strategy, risk, and ethical implications for all stakeholders. 3. Re-compute the NPV assuming the required rate of return is 18%. What is your recommendation
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