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Waste Industries is evaluating a $55,200 project with the following cash flows. Years Cash Flows $ 9,100 19,000 21,500 20,200 31,900 The coefficient of variation
Waste Industries is evaluating a $55,200 project with the following cash flows. Years Cash Flows $ 9,100 19,000 21,500 20,200 31,900 The coefficient of variation for the project is 0.834. Discount Rate 4% Coefficient of Variation 0 - 0.25 0.26 - 0.50 0.51 -0.75 0.76 - 1.00 1.01 - 1.25 7% 10% 12% 18% 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. 4% 7% OOOO 10% 12% 18% 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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