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6. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) ELITE eBook A firm with a WACC of 10% is considering the following mutually exclusive projects:
6. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) ELITE eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 - $400 $45 $45 Project 2 -$650 $250 $250 Which project would you recommend? $45 $125 $240 $125 $240 $125 Select the correct answer. Oa. Project 1, since the NPV1 > NPV2. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. Oc. Both Projects 1 and 2, since both projects have NPV'S > 0. Od. Project 2, since the NPV2 > NPV1. Oe. Neither Project 1 nor 2, since each project's NPV
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