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: 3 4. 5 0 1 2 + Project 1 -$300 $55 $55 Project 2 -$400 $300 $300 Which project would you recommend? $55 $100 $195 $100 $195 $100 Select the correct answer. a. Project 1, since the NPV1 > NPV2. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. c. Both Projects 1 and 2, since both projects have NPV's > 0. d. Neither Project 1 nor 2, since each project's NPV NPV1