Last Month,Lloyd's Systems Analyzed the Project Whose Cash Flows Are

question 20

Multiple Choice

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 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.

• A) 0$9.04
• B) 0$11.12
• C) 0$10.22
• D) 0$10.85
• E) 0$10.13

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Definitions:

Repressed Emotions

Emotions that have been unconsciously hidden away by an individual to avoid dealing with the stress or trauma associated with them.

Displacement

A psychological defense mechanism where emotional responses are transferred from their original source to a safer or more acceptable object or person.

Secondary Gain

The advantage or benefit a person unconsciously gains from maintaining their illness or ailment.

Repressed Emotions

Emotions that are unconsciously avoided or suppressed due to various psychological reasons.