Waste Industries is evaluating a $53,800 project with the following cash flows. Years 2 3 4 5 Cash Flows 0.00-0.25 0.26-0.50 0.51-0.75 0.76-1.00 1.01-1.25. 9,240 15,900 22,600 21,300 33,000 The coefficient of variation is 0.975. Coefficient of variation Discount rate 此催99522 7% 19 15 43 Compute the net present value (NPV). (Negative answer should be indicated by a minus sign. Do not round intermediat calculations. Round the final answer to the nearest whole dollar. Omit the $ sign in the answer.) Net present value Based on the net present value. should the proiect be undertaken?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Waste Industries is evaluating a $53,800 project with the following cash flows.
Years
1234 in
5
Coefficient of
variation.
The coefficient of variation is 0.975.
0.00-0.25
0.26-0.50
0.51-0.75
Cashi
Flows
0.76-1.00
1.01-1.25
9,240
15,900
22,600
21,300
33,000
Discount rate
7%
9
19
15
22
57
Compute the net present value (NPV). (Negative answer should be indicated by a minus sign. Do not round intermediate
calculations. Round the final answer to the nearest whole dollar. Omit the $ sign in the answer.)
Net present value
Based on the net present value should the project be undertaken?
Transcribed Image Text:Waste Industries is evaluating a $53,800 project with the following cash flows. Years 1234 in 5 Coefficient of variation. The coefficient of variation is 0.975. 0.00-0.25 0.26-0.50 0.51-0.75 Cashi Flows 0.76-1.00 1.01-1.25 9,240 15,900 22,600 21,300 33,000 Discount rate 7% 9 19 15 22 57 Compute the net present value (NPV). (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Omit the $ sign in the answer.) Net present value Based on the net present value should the project be undertaken?
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