11.10

CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS firm with a WACC of 10% is considering the following mutually exclusive projects. 0 Project 1 $300 $70 $70 $70 $175 $175 Project 2 $600 $350 $350 $65 $65 $65 Which project would you recommend? Select the correct answer. 0 a. Neither project 1 nor 2, since each project's NPV NPV2. O c. Both Projects 1 and 2, since both projects have NPV's > o. d. Both Projects 1 and 2, since both projects have IRR's o. e. Project 2, since the NPV2 > NPV