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6. Problem 11.10 Click here to read the eBook: Net Present Value (NPV) CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of
6. Problem 11.10 Click here to read the eBook: Net Present Value (NPV) CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$250 $55 $55 Project 2 -$400 $250 Which project would you recommend? + $55 $70 $225 $70 $225 $70 $250 Select the correct answer. Oa. Both Projects 1 and 2, since both projects have NPV's >0. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. Oc. Project 2, since the NPV2 > NPV1. Od. Project 1, since the NPV1 > NPV2. Oe. Neither Project 1 nor 2, since each project's NPV
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