Waste Industries is evaluating a $56,200 project with the following cash flows.

Years ___________Cash flows

1 ____________ $9,630

2 ____________ 12,100

3 _______________ 24,500

4________________24,500

5 ________________31,300

The coefficient of variation for the project is 0.654.

Coefficient of variation ______________discount rate

0-0.25 __________________________ 4%

0.26 - 0.50 _______________________7%

0.51 - 0.75 _______________________10%

0.76 - 1.00 _______________________12%

1.01 - 1.25 _______________________118%

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% _18% _10% _12%

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