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6. 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
6. 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 4 5 3 + $45 $100 $230 Project 1 -$300 $45 $45 Project 2 -$500 $200 $200 Which project would you recommend? $230 $100 $100 Select the correct answer. Oa. Neither Project 1 nor 2, since each project's NPV 0. Oc. Both Projects 1 and 2, since both projects have NPV's > 0. Od. Project 2, since the NPV2 > NPV1. Oe. Project 1, since the NPV1 > NPV2
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