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

$012345$

Project $1-$$$300$ $$65$ $$65$ $$65$ $$195$ $$195$

Project $2-$$$600$ $$250$ $$250$ $$135$ $$135$ $$135$

Which project would you recommend?

Select the correct answer.

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

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

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

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