Waste Industries is evaluating a $51,800 project with the following cash flows.

Years		Cash Flows
1		$	9,950
2			18,900
3			26,100
4			18,600
5			31,100

The coefficient of variation for the project is .494.

Coefficient of Variation				Discount Rate
0		.25			7	%
.26		.50			9	%
.51		.75			13	%
.76		1.00			16	%
1.01		1.25			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.)

c. Based on the net present value should the project be undertaken?

	No
	Yes