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Formula and financial calculator methods

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Reference no: EM131979761

Waste Industries is evaluating a $55,200 project with the following cash flows.  

Years Cash Flows1 $9,100 2  19,000 3  21,500 4  20,200 5  31,900 

The Coefficient of variation for the project is .834.

Coefficient of Variation Discount Rate0-.25  4%.26-.50  7%.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% 7% 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.)

c. Based on the net present value should the project be undertaken?

No or Yes

Reference no: EM131979761

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