Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 2 3 4 Project 1 $300 $40 $40 $40 $160 $160 Project 2$400 $300 $300 $65 $65 $65 Which project would you recommend? Select the correct answer. I. Both Projects 1 and 2, since both projects have IRR's >0. II. Both Projects 1 and 2, since both projects have NPVs> 0. III. Neither A or B, since each project's NPV NPV1. V Project 1, since the NPV1 > NPV2