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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 + $45 $180 $100 Project

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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 + $45 $180 $100 Project 1 -$400 $45 $45 $180 Project 2 -$400 $350 $350 $100 $100 Which project would you recommend? Select the correct answer. a. Neither Project 1 nor 2, since each project's NPV 0. O c. Project 2, since the NPV2> NPV4. d. Both Projects 1 and 2, since both projects have NPV's > 0. e. Project 1, since the NPV, > NPV2

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