Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) A firm with a WACC of 10% is considering the following mutually exclusive projects: Select the correct answer. a. Both Projects 1 and 2 , since both projects have NPV's >0. b. Project 1 , since the NPV1>NPV2. c. Neither Project 1 nor 2 , since each project's NPV 0. e. Project 2, since the NPV2>NPV1. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) Project $ requires an initial outiay at t=0 of $10,000, and its expected cash fows would be $5,000 per year for 5 years. Mutually exelusive Project L requires an initial outiay at t. - 0 of $49,000, and its expected cash flows wauld be $14,300 per year for 5 years. U both projects have a wace of 16%, which project would you recommend? Select the correct answer. Both Projects S and L, because both projects have IRR's >0. b. Project L, because the NPVL > NPV 5 . 1. Project S, because the NPVs > NPVL. Project. Projec piaces