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Last month, Standard Systems analyzed the project whose cash flows are shown below. However, before...

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Accounting

Last month, Standard Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project took place, the Federal Reserve changed interest rates and therefore the firm's WACC. The Fed'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 = 12.0% New WACC = 13.75% Year Cash Flow 0 -1200 1 650 2 700 3 875 Group of answer choices - 25.08 - 48.57 - 54.27 - 37.14

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