California best Truck project.

Question: What is the companys cost of capital? What is the appropriate discount factor (which may be different) for you to use in evaluating the bus project?

	California Engine Year	Cash Flow	Discount Factor	DCF
	1	-192	0.91	-175
	2	168	0.83	139
	3	246	0.75	185
	4	254	0.69	174
	5	262	0.62	163
	6	286	0.57	174
	7	295	0.52	152
	8	304	0.47	143
	9	313	0.43	134
	10	323	0.39	125
	11	333	0.35	118
	12	343	0.32	110
	13	353	0.29	103
	14	364	0.27	97
	15	375	0.24	91
	16	387	0.22	85.3
	17	399	0.2	80
	18	411	0.18	75
	19	424	0.17	70.3
	20	454	0.15	68.6