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2. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) TUTE eBook A firm with a WACC of 10% is considering the following mutually exclusive projects:

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2. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) TUTE eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 4 5 Project 1 -$450 $75 $75 Project 2 -$400 $200 $200 Which project would you recommend? $75 $130 $235 $130 $235 $130 Select the correct answer. Oa. Project 2, since the NPV2 > NPV1. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. c. Project 1, since the NPV1 > NPV2. Od. Both Projects 1 and 2, since both projects have NPV's > 0. Oe. Neither Project 1 nor 2, since each project's NPV

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