12) Corner Restaurant is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first five years. Starting in Year 4, the project will produce cash inflows of $151,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 18.6 percent. What is the project's net present value? A) -$46,028.92 B) $39,487.15 C) -$38,399.55 D) $67,653.02 E) $18,715.97 13) Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $2.8 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next six years. The discount rate is 12.5 percent. What is the benefit of the remodeling project to Professional Properties? A) $562,988.92 B) -$437,160.48 C) $574,360.12 D) $524,147.59 E) -$406,727.47