Question

20) Waste Industries is evaluating a $53,800 project with the following cash flows.  YearsCash Flows1$9,240 2 15,900 3 22,600 4 21,300 5 33,000   The coefficient of variation for the project is .975.  
 Coefficient of VariationDiscount Rate0−.25 4%.26−.50 9%.51−.75 10%.76−1.00 12%1.01− 1.25 18%  Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. 
 a.Select the appropriate discount rate.   4%9%10%12%18% 
 b.Compute the net present value. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)    Net present value$ 
 c. Based on the net present value should the project be undertaken?   NoYes

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