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...

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

                                           Project Red     Project White

YearCash 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?

20.04%

10.00%

0.00%

24.96%

14.30%