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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $175 $140 Project 1 -$300

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 $175 $140 Project 1 -$300 $60 $60 $60 $175 Project 2 - $650 $350 $350 $140 $140 Which project would you recommend? Select the correct answer. a. Both Projects 1 and 2, since both projects have NPV's > 0. b. Project 1, since the NPV1 > NPV2. O c. Neither Project 1 nor 2, since each project's NPV NPV1. e. Both Projects 1 and 2, since both projects have IRR's > 0

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