A firm with a WACC of $10\%$ is considering the following mutually exclusive projects:

$012345$

Project $1-$$$500$ $$50$ $$50$ $$50$ $$235$ $$235$

Project $2-$$$650$ $$350$ $$350$ $$150$ $$150$ $$150$

Which project would you recommend?

Select the correct answer.

a$.$ Both Projects $1$ and $2,$ since both projects have IRR's $>0.$

b$.$ Project $2,$ since the NPV$2>$ NPV$1.$

c$.$ Project $1,$ since the NPV$1>$ NPV$2.$

d$.$ Both Projects $1$ and $2,$ since both projects have NPV$\text{'}$s $>0.$

e$.$ Neither Project $1$ nor $2,$ since each project's NPV $<0.$