3. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) A firm with a WACC of 10% is considering the following mutually exclusive projects: \begin{tabular}{l|cccccc|} & 0 & 1 & 2 & 3 & 4 & 5 \\ Project 1 & $350 & $65 & $65 & $65 & $235 & $235 \\ Project 2 & $700 & $200 & $200 & $100 & $100 & $100 \end{tabular} Which project would you recommend? Select the correct answer. a. Project 2 , since the NPV 2> NPV 1. b. Project 1 , since the NPV > NPV2. 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. Neither Project 1 nor 2 , since each project's NPV NPVL. b. Project L, because the NPVL > NPVs. c. Neither Project 5 nor L, because each project's NPV 0. e. Both Projects S and L, because both projects have IRR's > 0