Question: Last month, Inglewood Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal

Last month, Inglewood Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. Th Fed's action did not affect the forecasted cash flows. By how much did the change i the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected. OId WACC: 10.00% New WACC: 11.20% Year 0: CF0 =$1,000, Year 1: CF1 =$410, Year 2:CF2=$410, Year 3:CF3= $410. (Multiple Choice) Excel Link: Excel Sheet.xIsx $19.32$18.65$21.16$24.33$22.03
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