20)

Waste Industries is evaluating a $53,800 project with the following cash flows.

Years	Cash Flows
1	$	9,240
2		15,900
3		22,600
4		21,300
5		33,000

The coefficient of variation for the project is .975.

Coefficient of Variation	Discount Rate
0		.25		4	%
.26		.50		9	%
.51		.75		10	%
.76		1.00		12	%
1.01		1.25		18	%

UseAppendix Bfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

a.	Select the appropriate discount rate.
	4% 9% 10% 12% 18%

b.	Compute the net present value.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

Net present value

$

c.	Based on the net present value should the project be undertaken?
	No Yes