Last month, a Rawlings Unlimited decided to accept a project whose cash flows are shown below. However, before actually starting the project, the Federal Reserve took actions that lowered interest rates and therefore the firm%u2019s WACC. By how much did the change in the WACC affect the project's forecasted NPV? (What is the %u0394NPV resulting from the Federal Reserve actions.)

New WACC = 8% Old WACC = 11%

Year Cash Flows

0 -$1,000

1 500

2 500

3 500