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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 1 3 4 5 Project 1 Project 2
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 1 3 4 5 Project 1 Project 2 -$200 - $650 $55 $250 $55 $250 $55 $105 $180 $105 $180 $105 Which project would you recommend? Select the correct answer. O a. Project 2, since the NPV2 > NPV1. Ob. Both Projects 1 and 2, since both projects have IRR'S > 0. C. Project 1, since the NPV1 > NPV2. O d. Both Projects 1 and 2, since both projects have NPV's > 0. Oe. Neither Project 1 nor 2, since each project's NPV
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