2. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 4. 5 Project 1 Project 2 -$450 $55 $55 $55 $195 $195 -$400 $200 $200 $135 $135 $135 Which project would you recommend? Select the correct answer. Oa. Project 1, since the NPV1 > NPV2. Ob. Project 2, since the NPV2> NPV1. Oc. Both Projects 1 and 2, since both projects have IRR's > 0. Od. Neither Project 1 nor 2, since each project's NPV < 0. Oe. Both Projects 1 and 2, since both projects have NPV's > 0