Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to acce

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answerhappygod
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Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to acce

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Last month, Lloyd's Systems analyzed the project whose cashflows are shown below. However, before the decision to acceptor reject the project, the Federal Reserve took actions thatchanged interest rates and therefore the firm's WACC. TheFed's action did not affect the forecasted cash flows. By howmuch did the change in the WACC affect the project's forecastedNPV? Note that a project's projected NPV can be negative, inwhich case it should be rejected.Old WACC: 10.00% New WACC: 11.25%
-$48.33
-$49.91
-$50.28
-$51.37
-$52.34
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