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

0 1 2 3 4 5

Project 1	-$250	$50	$50	$50	$200	$200
Project 2	-$600	$300	$300	$100	$100	$100

Select the correct answer.

a. Project 1, since the NPV1 > NPV2.

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

c. Project 2, since the NPV2 > NPV1.

d. Both Projects 1 and 2, since both projects have NPV's > 0.

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