A firm with a WACC of 10% is considering the following mutually exclusive projects: 0...
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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$450 $80 $80 $80 $235 $235 Project 2 -$450 $350 $350 $115 $115 $115 Which project would you recommend? Select the correct answer. a. Project 2, since the NPV2 > NPV1. b. Neither Project 1 nor 2, since each project's NPV < 0. c. Both Projects 1 and 2, since both projects have NPV's > 0. d. Both Projects 1 and 2, since both projects have IRR's > 0. e. Project 1, since the NPV1 > NPV2.
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