Blue Inc. is considering a project with an initial cost of $1 million. The project will not produce any cash flows for the first two years. Starting in year 3, the project will produce cash inflows of S625,000 a year for four years. This project is risky, so the firm has assigned it a discount rate of 20 percent. What is the net present value? O $142,180.37 O $123,582.71 O $166,480,49 $189,140.82 QUESTION 11 Ivory Club is considering adding a miniature golf course to its facility. The course would cost $40,000, would be depreciated on a straight-line basis over its 4-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $45,000 a year with $12,000 of that amount being variable cost. The fixed cost would be $5,000. The project will require $4,000 of not working capital, which is recoverable at the end of the project. What is the net present value of this project at a discount rate of 12 percent and a tax rate of 21 percent? O $30.152.90 $26.734.16 $32,106.67 $28,412.69