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I do not understand this question can you please help me? 10/13/2017 Homework 6 BUSI 320 Dev Shell: BUSI 320 - Fall B 2017 1

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I do not understand this question can you please help me?

image text in transcribed 10/13/2017 Homework 6 BUSI 320 Dev Shell: BUSI 320 - Fall B 2017 1 Homework 6 20. jasmin Brown instructions | help value: 2.00 points Waste Industries is evaluating a $56,900 project with the following cash flows. Years 1 2 3 4 5 Cash Flows $ 9,710 19,200 26,500 19,800 27,300 The coefficient of variation for the project is .443. Coefficient of Variation 0 .25 .26 .50 .51 .75 .76 1.00 1.01 1.25 Discount Rate 7% 9% 13% 16% 19% Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Select the appropriate discount rate. 7% 19% 13% 9% 16% 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 $ 367.70 c. Based on the net present value should the project be undertaken? No Yes Hints References eBook & Resources Hint #1 Check my work 2017 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1

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