Waste Industries is evaluating a $57,100 project with the following cash flows. ...
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Accounting
Waste Industries is evaluating a $57,100 project with the following cash flows.
Years
Cash Flows
1
$
9,210
2
21,400
3
18,500
4
25,600
5
24,300
The coefficient of variation for the project is 1.223.
Coefficient of Variation
Discount Rate
0
0.25
5
%
0.26
0.50
10
%
0.51
0.75
12
%
0.76
1.00
19
%
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.
multiple choice 1
5%
10%
12%
20%
19%
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.)
c. Based on the net present value should the project be undertaken?
multiple choice 2
Yes
No
Answer & Explanation
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