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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 -$200 $80 $80
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$200 $80 $80 $80 $180 $180 Project 2 -$450 $250 $250 $105 $105 $105 Which project would you recommend? Select the correct answer. a. Project 1, since the NPV > NPV2. b. Project 2, since the NPV> NPV1. c. Both Projects 1 and 2, since both projects have NPV's > 0. 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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