Last Month,Smith Systems Inc ​
A)$57

question 52

Multiple Choice

Last month,Smith Systems Inc.decided to accept the project whose cash flows are shown below.However,before actually starting the project,the Bank of Canada took actions that lowered interest rates and therefore Smith's WACC.By how much did the change in the WACC affect the project's forecasted NPV? Assume that the Bank of Canada's action does not affect the cash flows.​​ $\begin{array}{lcccc}\text { New WACC: } & 8.00 \% & \text { Old WACC: } & 11.00 \% & \\\text { Year: } & 0 & 1 & 2 & 3 \\\text { Cash flows: } & -\$ 1,000 & \$ 500 & \$ 500 & \$ 500\end{array}$ ​

• A)$57.18
• B)$60.19
• C)$63.36
• D)$66.69

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Definitions:

Axon

The neuron’s extension that passes messages through its branching terminal fibers that form junctions with other neurons, muscles, or glands.

Neuron

A nerve cell; the basic building block of the nervous system.

Cell Body

The part of a neuron that contains the nucleus and most of the cell's metabolic machinery, playing a crucial role in the cell's function.

Dendrites

Tree-like extensions of a neuron that receive signals from other neurons.