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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 Project 2 -$500

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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 Project 2 -$500 -$700 $65 $350 $65 $350 $65 $105 $215 $105 $215 $105 Which project would you recommend? Select the correct answer. a. Project 1, since the NPV: > NPV2. b. Both Projects 1 and 2, since both projects have NPV's > 0. O c. Project 2, since the NPV2 > NPV1. d. Neither Project 1 nor 2, since each project's NPV 0

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