Question: Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the the Federal Reserve
Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the
the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecaste
flows. By how much did the change in the WACC affect the project's forecasted NPV Note that a project's projected NPV can be negative
which case it should be rejected.
a$
b$
c$
d$
e$
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