5 Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) eBook 0 2 3 4 5 A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 + Project 1 -$500 $75 $75 $75 $205 $205 Project 2 -$400 $250 $250 $125 $125 $125 Which project would you recommend? Select the correct answer. a. Project 1, since the NPV, > NPV2. O b. Project 2, since the NPV2 > NPV1. c. Neither Project 1 nor 2, since each project's NPV 0. e. Both Projects 1 and 2 Since both projects have IRR's > 0. CHA Y Q9 MacBook Pro