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Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: Which project would you recommend?

Capital budgeting criteria: mutually exclusive projects

A firm with a WACC of 10% is considering the following mutually exclusive projects:

Which project would you recommend?

Select the correct answer.

I. Project A, since the NPVA> NPVB.

II. Both Projects A and B, since both projects have NPV's > 0.

III. Both Projects A and B, since both projects have IRR's > 0.

IV. Project B, since the NPVB> NPVA.

V. Neither A or B, since each project's NPV

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