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: 0 2 3 4 5 Project 1 -$400 $75 $75 Project 2 -$400 $300 $300 Which project would you recommend? 75 $55 170 $55 $55 Select the correct answer. Ca. Both Projects 1 and 2, since both projects have NPV's > 0. Ob. Project 1, since the NPV1 > NPV2. Oc. Neither Project 1 nor 2, since each project's NPV 0. Oe. Project 2, since the NPV2 > NPV1