Attempts $$

Keep the Highest $/1$

$2.$ Problem $11\mathrm{.}10($Capital Budgeting Criteria: Mutually Exclusive Projects$)$

A firm with a WACC of $10\%$ is considering the following mutually exclusive projects:

Proje

Proje

Select the correct answer.

a$.$ Neither Project $1$ nor $2,$ since each project's NPV

b$.$ Both Projects $1$ and $2,$ since both projects have NPV$\text{'}$s $>0.$

c$.$ Both Projects $1$ and $2,$ since both projects have IRR's $>0.$

d$.$ Project $1,$ since the NPV $N_1>N{V}_2.$

e$.$ Project $2,$ since the NPV $2>$ NPV ${?}_1.$