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A firm with a WACC of 10% is considering the following mutually exclusive projects: 3 4 5 0 1 2 + Project 1 -$500 $40
A firm with a WACC of 10% is considering the following mutually exclusive projects: 3 4 5 0 1 2 + Project 1 -$500 $40 $40 Project 2 -$500 $250 $250 Which project would you recommend? $40 $185 $185 $140 $140 $140 Select the correct answer. Oa. Project 2, since the NPV2 > NPV1. Ob. Both Projects 1 and 2, since both projects have NPV's > 0. Oc. Neither Project 1 nor 2, since each project's NPV NPV2. Oe. Both Projects 1 and 2, since both projects have IRR's > 0
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