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A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 1 2 3 4 Project 1 Project 2 -$400 -$450

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 1 2 3 4 Project 1 Project 2 -$400 -$450 $50 $200 $50 $200 $50 $135 $170 $135 $170 $135 Which project would you recommend? Select the correct answer. a. Both Projects 1 and 2, since both projects have NPV's > 0. b. Both Projects 1 and 2, since both projects have IRR's > 0. c. Project 2, since the NPV2 > NPV1. d. Neither Project 1 nor 2, since each project's NPV NPV2

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