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. Both Projects 1 and 2, since both projects have NPV's > 0.

II. Project 1, since the NPV1 > NPV2.

III. Project 2, since the NPV2 > NPV1.

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

V. Both Projects 1 and 2, since both projects have IRR's > 0.

2 3 4 Project 1 300 $60 $60 $60 $175 $175 Project 2$550 $300 $300 $65 $65 $65