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Page 8 of 13 Falone Milemba Mbala: Attempt 1 Next Page 5:57 vious Page 2 $4,500 New WACC: 10.50% destion 8 (2.25 points) 1 $4,300

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Page 8 of 13 Falone Milemba Mbala: Attempt 1 Next Page 5:57 vious Page 2 $4,500 New WACC: 10.50% destion 8 (2.25 points) 1 $4,300 Final Clearance Inc. recently analyzed the project whose cash flows are shown below. However, before Finals 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 NPV can be negative, in which case it should be rejected $4,200 Old WACC: 11.00% 0 $12,000 Year Cash flows -593.64 OS102.54

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