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A firm with a WACC of 0 F -$250 1% is considering the following mutually exclusive projects: 5 1 + $70 $200 2 + $70

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A firm with a WACC of 0 F -$250 1% is considering the following mutually exclusive projects: 5 1 + $70 $200 2 + $70 $200 Project 1 Project 2 -$500 Which project would you recommend? 3 + $70 $105 4 $170 $105 $170 $105 Select the correct answer. Oa. Project 2, since the NPV2 > NPV. ob. Both Projects 1 and 2, since both projects have NPV's > 0. Oc. Both Projects 1 and 2, since both projects have IRR's > 0. Od. Neither Project 1 nor 2, since each project's NPV NPV2

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