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A firm with a WACC of 10% is considering the following mutually exclusive projects: 4 Project 1$500 $60 $60 60 $220 $220 Project 2 $500

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 4 Project 1$500 $60 $60 60 $220 $220 Project 2 $500 $200 $200 $135 $135 $135 Which project would you recommend? Select the correct answer. O Project 2, since the NPV2> NP b.Both Projects 1 and 2, since both projects have IRR's>0 c.Project 1, since the NPVi > NPV2. d Both Projects Oe. Neither Project 1 nor 2, since and 2, since both projects have NPV's o. have NPV's >o each project's NPV

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