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QUESTION 14 Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the project,
QUESTION 14 Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik 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? Old WACC = 8.00% New WACC = 8.25% Year 0 1 2 3 CF - 1,000 410 410 410 $3.66 -$4.27 $4.75 -$5.46 $5.18 QUESTION 15 Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 9.75% Year 0 1 2 3 CF -1,000 450 450 450 14.11% 15.52% 15.81% 10.72% 17.22%
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