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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2. 3 4 5 $50 $145 $185 $145 $185

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2. 3 4 5 $50 $145 $185 $145 $185 $145 Project 1 -$200 $50 $50 Project 2 -$600 $250 $250 Which project would you recommend? Select the correct answer. O a. Neither Project 1 nor 2, since each project's NPV 0. O c. Both Projects 1 and 2, since both projects have IRR's > 0. O d. Project 1, since the NPV1 > NPV2. O e. Project 2, since the NPV2 > NPV1

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