a firm with a WACC of 10% is considering the following mutually exclusive projects: Select the correct answer.

eBook Problem 11-10 Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 4 5 Project 1 -$300 $50 $50 $50 $240 $240 Project 2 -$700 $250 $250 $50 $50 $50 Which project would you recommend? Select the correct answer. I. Both Projects 1 and 2, since both projects have NPV's > 0. O II. Project 2, since the NPV2 > NPV1. III. Project 1, since the NPV1 > NPV2. O IV. Neither A or B, since each project's NPV 0. Check My Work (1 remaining)