A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$200 $80 $80 $80 $215 $215 Project 2 -$550 $250 $250 $150 $150 $150 Which project would you recommend?

Select the correct answer. a. Neither Project 1 nor 2, since each project's NPV < 0. b. Project 2, since the NPV2 > NPV1. c. Both Projects 1 and 2, since both projects have NPV's > 0. d. Project 1, since the NPV1 > NPV2. e. Both Projects 1 and 2, since both projects have IRR's > 0.