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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 $300 $50 $50

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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 $300 $50 $50 $50 $205 $205 Project 2$400 $350 $350 $45 $45 $45 Which project would you recommend? Select the correct answer. 0 a. Neither Project 1 nor 2, since each project's NPV NPV:2 c. Both Projects 1 and 2, since both projects have IRR's > O. d. Project 2, since the NPV2> NPV1. e. Both Projects 1 and 2, since both projects have NPV's > 0

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