None Last month, Standard Systems analyzed the project whose cash flows are shownbelow. However, before the decision to accept or reject the project took place, theFederal Reserve changed interest rates and therefore the firm's WACC. The Fed'saction did not affect the forecasted cash flows. By how much did the change in theWACC affect the project's forecasted NPV?Old WACC: 10.00%New WACC: 11.25%Year0123Cash flows-$1,000$410$410$410-$23.13-$18.89-$22.03-$20.93-$19.88

Answered: Image /qna-images/answer/afe5daec-212b-4d9e-811f-4c1da12b72ec.jpg

Answered: Last month, Standard Systems analyzed…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 2P

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