CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1-$200 $70$70 $0$220 $220 Project 2-$650 $300 $300 $50 $50 $50 Which project would you recommend? Select the correct answer a. Both Projects 1 and 2, since both projects have IRR's>0 b. Both Projects 1 and 2,since both projects have NPVs >0 c. Project 1, since the NPV1> NPV2. d. Neither Project 1 nor 2, since each project's NPV0 e. Project 2, since the NPV2> NPV