Questions Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) 13. 3 Check M 14. 15. eBook 16. A firm with a WACC of 10% is considering the following mutually exclusive projects: 17 0 1 2 4 5 18 o 3 + $45 $105 Project 1 -$250 $45 $45 Project 2 -$500 $350 $350 Which project would you recommend? 19. $205 $105 $205 $105 20. Select the correct answer a. Project 1 Since the NPV > NPV2. b. Both Projects 1 and 2, since both projects have NPV's > 0. Neither Project 1 nor 2, since each project's NPV NPV1 O e Both Projects 1 and 2, since both projects have IRR's > 0. Check My 0-Icon Key