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Waste Industries is evaluating a $56900 project with the following cash flows Years Cash Flows 1 $ 9240 2 15800 3 21200 4 25400 5 33200 The coefficient of variation for the project is

Waste Industries is evaluating a $56,900 project with the following cash flows.

 

Years Cash Flows
1 $ 9,240  
2   15,800  
3   21,200  
4   25,400  
5   33,200  
 

 

The coefficient of variation for the project is 1.025.

 

Coefficient of Variation Discount Rate
0 − .25   6 %
.26 − .50   8 %
.51 − .75   12 %
.76 − 1.00   16 %
1.01 − 1.25   20 %
 

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.

   
 
  6%
  8%
  12%
  20%
  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?
   
 
  Yes
  No

Aug 14 2020 Read more Less More

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