12-2: Net Present Value (NPV) Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 4 5 $185 $65 3 + Project A -$450 $75 $75 $75 $185 Project B -$500 $350 $350 $65 $65 which project would you recommend? Select the correct answer. O I. Project A, since the NPVA > NPVB. II. Project B, since the NPVB > NPVA. III. Both Projects A and B, since both projects have NPV's > 0. IV. Both Projects A and B, since both projects have IRR's > 0. V. Neither A or B, since each project's NPV