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Last month, Durmus Systems analyzed the project whose cash flowsare shown below. However, before the decision to accept or rejectthe project, the Federal Reserve took actions that changed interestrates and therefore the firm's WACC. The Fed's action did notaffect the forecasted cash flows. By how much did the change in theWACC affect the project's forecasted NPV? Old WACC: 9.00% New WACC:9.25% Year 0 1 2 3Cash flows -$1,000 $710 $610 $310
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