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4. need correct answers 5. 6. A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 5 0 1

4. need correct answers
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A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 5 0 1 4 $200 $115 Project 1 -$300 $65 $65 $65 $200 Project 2 -$700 $200 $200 $115 $115 Which project would you recommend? Select the correct answer. a. Project 1. since the NPV1 > NPV2. O b. Both Projects 1 and 2 since both projects have NPV's > 0. O c. Project 2, since the NPV2 > NPV1. O d. Both Projects 1 and 2. since both projects have IRR's > 0. O e. Neither Project 1 nor 2. since each project's NPV

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