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. Old WACC: 10.00% New WACC: 9.50%
Year 0 1 2 3
Cash flows -$1,000 $410 $410 $410

Answers: A.
$10.85
B.
$10.13
C.
$9.04
D.
$11.12
E.
$10.22

Cone w has a radius of 8 cm and a height of 5 cm. square pyramid x has the same base area and height as cone w. paul and manuel disagree on how the volumes of cone w and square pyramid x are related. examine their arguments. which statement explains whose argument is correct and why? paul manuel the volume of square pyramid x is equal to the volume of cone w. this can be proven by finding the base area and volume of cone w, along with the volume of square pyramid x. the base area of cone w is π(r2) = π(82) = 200.96 cm2. the volume of cone w is one third(area of base)(h) = one third third(200.96)(5) = 334.93 cm3. the volume of square pyramid x is one third(area of base)(h) = one third(200.96)(5) = 334.93 cm3. the volume of square pyramid x is three times the volume of cone w. this can be proven by finding the base area and volume of cone w, along with the volume of square pyramid x. the base area of cone w is π(r2) = π(82) = 200.96 cm2. the volume of cone w is one third(area of base)(h) = one third(200.96)(5) = 334.93 cm3. the volume of square pyramid x is (area of base)(h) = (200.96)(5) = 1,004.8 cm3. paul's argument is correct; manuel used the incorrect formula to find the volume of square pyramid x. paul's argument is correct; manuel used the incorrect base area to find the volume of square pyramid x. manuel's argument is correct; paul used the incorrect formula to find the volume of square pyramid x. manuel's argument is correct; paul used the incorrect base area to find the volume of square pyramid x.