Waste Industries is evaluating a $55,500 project with the following cash flows.

Years	Cash Flows
1	$	9,120
2		20,200
3		26,600
4		16,300
5		26,300

The coefficient of variation for the project is .475.

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.)

Net present value

$

c.

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

	No
	Yes