Question
Waste Industries is evaluating a $53,100 project with the following cash flows. Years Cash Flows 1 $ 9,650 2 21,300 3 26,400 4 21,600 5
Waste Industries is evaluating a $53,100 project with the following cash flows.
| Years | Cash Flows | ||
| 1 | $ | 9,650 | |
| 2 | 21,300 | ||
| 3 | 26,400 | ||
| 4 | 21,600 | ||
| 5 | 31,900 | ||
The coefficient of variation is 1.115.
| Coefficient of variation | Discount rate | ||||
| 0.000.25 | 4 | % | |||
| 0.260.50 | 9 | ||||
| 0.510.75 | 22 | ||||
| 0.761.00 | 18 | ||||
| 1.011.25 | 13 | ||||
Compute the net present value (NPV). (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Omit the $ sign in the answer.)
Net present value
Based on the net present value, should the project be undertaken?
multiple choice
-
Yes
-
No
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