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A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 1 2 3 4 5 $40 $150 $185 $150 $185

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 1 2 3 4 5 $40 $150 $185 $150 $185 $150 Project 1 -$350 $40 $40 Project 2 -$700 $250 $250 Which project would you recommend? Select the correct answer. I a. Project 2, since the NPV2 > NPV1. O O O O b. Both Projects 1 and 2, since both projects have NPV's > 0. c. Project 1, since the NPV1 > NPV2. d. Both Projects 1 and 2, since both projects have IRR's > 0. e. Neither Project 1 nor 2, since each project's NPV

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