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23:46 el Homework Capital Budgeting.docx Lasik vision Inc. recently analyzed the project whose cash flows are shown below However, before Lasik decided to accept or

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23:46 el Homework Capital Budgeting.docx Lasik vision Inc. recently analyzed the project whose cash flows are shown below However, before Lasik 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? Note that a project's projected NEV can be negative, in which case it should be rejected Old WACC: 8.00% New WACC: 11.25% Year Cash flows - $1,000 $410 410 $410 Ehrmann Data Systems is considering a project that has the following cash flow and WAcc data. What is the project's MIRR Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected WACC : 10.00% Year Cash flos - 1,000 $450 450 $450 121

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