Question: Circle Inc. recently analyzed the project whose cash flows are shown below. However, before Circle Inc. decided to accept or reject the project, the Federal
Circle Inc. recently analyzed the project whose cash flows are shown below. However, before Circle Inc. decided to accept or reject the project, the Federal Reserve took actions that 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 (NPV at new WACC - NPV at old WACC)? If your answer is 1.23 dollars then input 1.23 in the answer box. If your answer is -1.23 dollars then input-1.23 in the answer box. Old WACC: 8.00% New WACC: 9.25% Year 3 Cash flows -$1,000 $410 $410 $410
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