Waste Industries is evaluating a $51,300 project with the following cash flows.

Years	Cash Flows
1	$	9,000
2		20,900
3		23,500
4		16,300
5		24,300

The coefficient of variation for the project is .945.

Coefficient of Variation			Discount Rate
0	?	.25		6	%
.26	?	.50		8	%
.51	?	.75		12	%
.76	?	1.00		16	%
1.01	?	1.25		20	%

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.

	6%
	8%
	12%
	16%
	20%

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

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