4. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$200 $55 $55 Project 2 -$500 $350 $350 Which project would you recommend? $55 $145 $190 $145 $190 $145 Select the correct answer. a. Both Projects 1 and 2, since both projects have IRR's > 0. Ob. Project 1, since the NPV1 > NPV2. Oc. Neither Project 1 nor 2, since each project's NPV 0. Oe. Project 2, since the NPV2 > NPV1