Figure $3$ Discount rate determination Coefficient of Variation Discount Rate $0\mathrm{.}208\%\mathrm{.}21\mathrm{.}4010\mathrm{.}41\mathrm{.}6014\mathrm{.}61\mathrm{.}8016$ Over $\mathrm{.}8020$ Required $1.$ Use the basic data in the case to put together an analysis similar to Table $12-11$ in the text. To determine earnings before depreciation and taxes $($EBDT$),$ subtract projected operating expenses from projected sales. Use a tax rate of $34$ percent. $2.$ Determine the appropriate discount rate for the firm. $3.$ Make a decision on whether the project is feasible, based on net present value analysis. $4.$ What is the drawback to using a six$-$year time horizon for the project?