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Star City is considering an investment in the community center that is expected to return the following cash flows. Year 1 2. 3 4 5

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Star City is considering an investment in the community center that is expected to return the following cash flows. Year 1 2. 3 4 5 Net Cash Flow $33,000 63,000 93,000 93,000 113,000 ?? ?? This schedule includes all cash inflows from the project, which will also require an immediate $250,000 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 12 percent? (Do not round your intermediate calculations, Round your answer to the nearest whole dollar.) b. What is the net present value of the project if the appropriate discount rate is 10 percent? (Do not round your intermediate calculations; Round your answer to the nearest whole dollar.) Net present value Net present value

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