Question: PLEASE ANSWER ASAPPPPPPP FOR UPVOTE/LIKE!!!!!!!! 1.Central Energy is considering two mutually exclusive projects, Project Red and Project The projects have the following cash flows: Project

PLEASE ANSWER ASAPPPPPPP FOR UPVOTE/LIKE!!!!!!!!

1.Central Energy is considering two mutually exclusive projects, Project Red and Project The projects have the following cash flows:

Project Red

Project White

Year

Cash Flows

Cash Flows

0

-1,000

-1,000

1

100

700

2

200

400

3

600

200

4

800

100

Assume that both projects have a 10 percent WACC.

At what weighted average cost of capital would the two projects have the same net present value?

  1. 20.04%

  2. 24.96%

  3. 10.00%

  4. 14.30%

  5. 0.00%

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