8. Problem 11.10 Click here to read the eBook: Net Present Value (NPV) CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS A firm with a WACC of 10% is considering the following mutually exclusive projects: 3 4 5 0 1 2 + Project 1 -$350 $45 $45 Project 2 -$700 $350 $350 Which project would you recommend? $45 $205 $80 $205 $80 $80 Select the correct answer. Oa. Neither Project 1 nor 2, since each project's NPV NPV2. Oc. Project 2, since the NPV2 > NPV1. Od. Both Projects 1 and 2, since both projects have IRR's > 0. Oe. Both Projects 1 and 2, since both projects have NPV's > 0