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Waste Industries is evaluating a $58,500 project with the following cash flows. Years Cash Flows 1 $ 9,780 12345 19,500 3 20,600 4 25,300
Waste Industries is evaluating a $58,500 project with the following cash flows. Years Cash Flows 1 $ 9,780 12345 19,500 3 20,600 4 25,300 5 27,800 The coefficient of variation for the project is 1.025. Coefficient of Variation Discount Rate 0-0.25 7% 0.26-0.50 9% 0.51 0.75 13% 0.76-1.00 16% 19% 1.01-1.25 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% 9% 13% 19% 16% b. Compute the net present value. Note: 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? O Yes O No.
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