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(NP W With difterent required rates of return) Mooby's is considering building a new theme park, After future cash flows wore estimated, but before the

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(NP W With difterent required rates of return) Mooby's is considering building a new theme park, After future cash flows wore estimated, but before the profect could be evaluated, the economy picked up and with that surge in the economy interest rates rose. That rise in interest rates was rellectrat in the required rate of return Mooty's used to evaluate new projects. As a result, the required rate of refurn for the new theme park jumped from 9.5 percent to 12 percent if the inilial outlay for the paik is expected to be $210 milion and the project is expected to return free cash flows of $60 million in years 1 through 5 and $80 milion in years 6 and 7 , what is the project's NPV using the new required rate of retum? How much did the project's NPV change as a result of the rise in interest rates

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