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13. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) 0 0 1 4 4 $60 $60 $60 $300 $ $105 eBook A firm with a
13. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) 0 0 1 4 4 $60 $60 $60 $300 $ $105 eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 2 3 5 H + + Project 1 -$200 $180 $180 Project 2 - $550 $300 $105 $105 Which project would you recommend? Select the correct answer. Ca. Both Projects 1 and 2, since both projects have NPV's > 0. Ob. Project 1, since the NPV, > NPV 2. OC. Project 2, since the NPV, > NPV1. Od. Both Projects 1 and 2, since both projects have IRR's > 0. Oe. Neither Project 1 nor 2, since each project's NPV
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