aptel Ed-or-Chapter Problems Problem 11-10 Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 5 Project 1 Project 2 -$400 $65 $65 $65 $200 $200 -$400 $250 $250 $50 $50 $50 Which project would you recommend? Select the correct answer. 1. Project 1, since the NPV1> NPV2 II. Both Projects 1 and 2, since both projects have IRR's> 0. III. Project 2, since the NPV2> NPV1 IV. Both Projects 1 and 2, since both projects have NPV's> 0. V. Neither A or B, since each project's NPV