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 -$500 $55 $55 $55 $215 $215 Project 2 -$450 $350 $350 $125 $125 $125 Which project would you recommend? Select the correct answer.

a. Both Projects 1 and 2, since both projects have IRR's > 0.

b. Both Projects 1 and 2, since both projects have NPV's > 0.

c. Project 1, since the NPV1 > NPV2.

d. Neither Project 1