A firm with a WACC of 10% is considering the following mutually exclusive projects:

0

1

2

3

4

5

Project 1	-$300	$75	$75	$75	$205	$205
Project 2	-$550	$350	$350	$130	$130	$130

Select the correct answer. a. Both Projects 1 and 2, since both projects have NPV's > 0

. b. Project 2, since the NPV2 > NPV1.

c. Both Projects 1 and 2, since both projects have IRR's > 0.

d. Neither Project 1 nor 2, since each project's NPV < 0.

e. Project 1, since the NPV1 > NPV2.