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1 A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 2 3 4 5 H + Project 1 -$400

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1 A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 2 3 4 5 H + Project 1 -$400 $75 $75 $75 $160 $160 Project 2 -$550 $250 $250 $130 $130 $130 Which project would you recommend? Select the correct answer. a. Project 1, since the NPV> NPV2. b. Both Projects 1 and 2, since both projects have IRR's > 0. c. Project 2, since the NPV2> NPV4. d. Both Projects 1 and 2, since both projects have NPV's > 0. e. Neither Project 1 nor 2, since each project's NPV

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