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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 -$250 $65 $65

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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 -$250 $65 $65 Project 2 -$700 $350 $350 Which project would you recommend? $65 $130 $185 $130 $185 $130 Select the correct answer. Ca. Neither Project 1 nor 2, since each project's NPV NPV2. c. Both Projects 1 and 2, since both projects have IRR's > 0. Od. Both Projects 1 and 2, since both projects have NPV's > 0. e. Project 2, since the NPV2 > NPV1

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