Last month, Amang Juan analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the BSP took actions that changed interest rates and therefore the firm's WACC. BSP’s action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Old WACC: 10.00% New WACC: 11.25% Year 0 1 2 3 Cash flows −$1,000 $410 $410 $410 Group of answer choices −$20.93 −$19.88 −$23.13 −$18.89

Last month, Amang Juan analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the BSP took actions that changed interest rates and therefore the firm's WACC. BSP’s action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Old WACC: 10.00% New WACC: 11.25% Year 0 1 2 3 Cash flows −$1,000 $410 $410 $410 Group of answer choices −$20.93 −$19.88 −$23.13 −$18.89

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...

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