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A firm with a WACC of 10% is considering the following mutually exclusive projects: 012345 Project 1-$250$45$45$45$165$165Project 2-$650$300$300$135$135$135 Which project would you recommend? Select the
A firm with a WACC of 10% is considering the following mutually exclusive projects:
012345 Project 1-$250$45$45$45$165$165Project 2-$650$300$300$135$135$135Which project would you recommend?
Select the correct answer.
a. Both Projects 1 and 2, since both projects have IRR's > 0. b. Neither Project 1 nor 2, since each project's NPV < 0. c. Project 1, since the NPV1 > NPV2. d. Project 2, since the NPV2 > NPV1. e. Both Projects 1 and 2, since both projects have NPV's > 0Step by Step Solution
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