1.

Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

Keep the - sign if it's a negative NPV number. Round to two decimal places.

WACC:	10.00%
Year	0	1	2	3
Cash flows	-$1,275	$450	$460	$470

2.

Last month, Lloyd's 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. 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?

Use the new NPV minus the old NPV. Keep the - sign if it's a negative change. Round to two decimal places.

Old WACC:	10.00%		New WACC:	9.50%
Year	0	1	2	3
Cash flows	-$1,000	$410	$410	$410