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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

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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 NPV of the project change as a result of the change in the WACC? (select the answer closest to your calculated answer) Old WACC 10.00% New WACC: 11.25% 2 Year 0 -$1,000 $410 $410 $410 Cash flows - $22.03 -$20.93 -$23.13 -$18.89

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