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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2. 3 4 5 Project 1 -$450 $65 $65

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2. 3 4 5 Project 1 -$450 $65 $65 Project 2 -$550 $300 $300 Which project would you recommend? $65 $135 $190 $135 $190 $135 Select the correct answer. a. Neither Project 1 nor 2, since each project's NPV 0. O c. Both Projects 1 and 2, since both projects have NPV's > 0. O d. Project 1, since the NPV > NPV2. e. Project 2, since the NPV2 > NPV

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