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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $45 $235 $235 Project 1
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $45 $235 $235 Project 1 -$250 $45 $45 Project 2 -$500 $300 $300 Which project would you recommend? $100 $100 $100 Select the correct answer. O a. Project 2, since the NPV2> NPV1. O b. Both Projects 1 and 2, since both projects have IRR's > 0. O c. Both Projects 1 and 2, since both projects have NPV's > 0. O d. Project 1, since the NPV1 > NPV2. O e. Neither Project 1 nor 2, since each project's NPV
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