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Last month Lloyd's systems analysed the project whose cash flows are shown below. however before the decision to accept or reject the project took place,

Last month Lloyd's systems analysed the project whose cash flows are shown below. however before the decision to accept or reject the project took place, the federal reserve 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 (weighted average cost capital) affects the project's forecasted NPV.? Note that the project's expected NPV can be negative, in which case, it should be rejected.

Old WACC 10% New WACC 11.25%
YEAR 0 1 2 3
CASH FLOWS ($10,000) $410 $410 $410

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