Problem 11-10 Capital budgeting criteria: mutually exclusive projects A firm with a WACC of 10% is considering the following mutually exclusive projects: O 1 2 3 4 5 $70 $55 $220 $55 $220 $55 Project 1 $300 $70 $70 Project 2 -$450 $350 $350 Which project would you recommend? Select the correct answer. 1. Project 2, since the NPV2 > NPV1. O II. Both Projects 1 and 2, since both projects have IRR's > 0. III. Both Projects 1 and 2, since both projects have NPV's > 0. IV. Project 1, since the NPV, > NPV2.X O V. Neither A or B, since each project's NPV