Back to Assignment Attempts Keep the Highest/1 2. Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 + 1 Project 1 - $500 $40 $40 $40 $175 $175 Project 2 -$500 $350 $350 $115 $115 $115 Which project would you recommend? Select the correct answer. a. Neither Project 1 nor 2, since each project's NPV 0. c. Both Projects 1 and 2, since both projects have IRR's > 0. d. Project 2, since the NPV2 > NPV1. e. Project 1, since the NPV1 > NPV2. >