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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $70 H + Project 1

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $70 H + Project 1 -$350 $70 $70 $165 $165 Project 2 -$650 $250 $250 $135 $135 $135 Which project would you recommend? Select the correct answer. Oa. Both Projects 1 and 2, since both projects have IRR's > 0. Ob. Project 1, since the NPV1 > NPV2. Oc. Neither Project 1 nor 2, since each project's NPV NPV1. Oe. Both Projects 1 and 2, since both projects have NPV's > 0

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