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Last month, standard system analyzed the project whose cash flows are shown below. However, before the...

Last month, standard system analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project the project took place at the federal reserve change interest rates and therefore the firms cost of capital (r) increased. The Feds action did not affect the forecasted cash flows. By how much did the change in the r affect the projects forecasted NPV?

OLD r = 10.00% NEW r = 11.25%

Year 0 1 2 3
Cash Flows -$1,000 $410 $410 $410
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