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. What is the internal rate of return of the project that has the highest NPV? 18.24% 10.00% 21.83% 14.30% 21.96%
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.
What is the
18.24%
10.00%
21.83%
14.30%
21.96%
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