The Bank of Canada Recently Shifted Its Monetary Policy,causing Lasik

Multiple Choice

The Bank of Canada recently shifted its monetary policy,causing Lasik Vision's WACC to change.Lasik had recently analyzed the project whose cash flows are shown below.However,the CFO wants to reconsider this and all other proposed projects in view of the Bank of Canada's action.How much did the changed WACC cause the forecasted NPV to change? Assume that the Bank of Canada's action does not affect the cash flows.​​ $\begin{array}{lcccc}\text { New WACC: } & 7.00 \% & \text { Old WACC: } & 10.00 \% & \\\text { Year: } & 0 & 1 & 2 & 3 \\\text { Cash flows: } & -\$ 1,000 & \$ 500 & \$ 520 & \$ 540\end{array}$ ​

A) $72.27
B) $75.88
C) $79.68
D) $83.66