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Waste Industries is evaluating a $70,000 project with the following cash flows: Years               Cash Flows 1            

Waste Industries is evaluating a $70,000 project with the following cash flows:

Years               Cash Flows

1                      11,000

2                      16,000

3                      21,000

4                      24,000

5                      30,000

Waste Industries uses risk adjusted discounted rates based on the coefficient of variation for a project. The coefficient of variation for the project is 0.847

Coefficient of variation          Discount Rate or WACC

0-.25                                        6%

.26-.5                                       8%

.51-.75                                     10%

.76-1                                        14%

1.01-1.25                                 20%

Enter the correct WACC for the project   %

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