Waste Industries is evaluating a $58,500 project with the following cash flows.

Years	Cash Flows
1	$ 9,780
2	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%
1.01 1.25	19%

Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

1. Select the appropriate discount rate.

1. multiple choice 1

1. 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.

7%

9%

13%

19%

16%