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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 N $225 $120 Project 1

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 N $225 $120 Project 1 -$200 $55 $55 $55 $225 Project 2 -$550 $300 $300 $120 $120 Which project would you recommend? Select the correct answer. O a. Project 2, since the NPV2 > NPV1. O b. Neither Project 1 nor 2, since each project's NPV NPV2. O d. Both Projects 1 and 2, since both projects have NPV's > 0. O e. Both Projects 1 and 2, since both projects have IRR's > 0

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