Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 4 Project 1$250 $65 $65 $65 $240 $240 Project 2$500 $200 $200 $80$80$80 Which project would you recommend? Select the correct answer. I. Project 2, since the NPV2 > NPV1. II. Both Projects 1 and 2, since both projects have IRR's>0 III. Neither A or B, since each project's NPV 0 V. Project 1, since the NPV1 > NPV2