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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 + + + + $225
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 + + + + $225 Project 1 -$200 $80 $80 Project 2 -$550 $350 $350 Which project would you recommend? $80 $135 $225 $135 $135 Select the correct answer. Oa. Neither Project 1 nor 2, since each project's NPV 0. Oc. Project 2, since the NPV2 > NPV1. Od. Project 1, since the NPV1 > NPV2. Oe. Both Projects 1 and 2, since both projects have IRR's > 0
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