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 1 2 3 4 5 Project 1 -$250 $50 $50 Project 2 -$600 $300 $300 Which project would you recommend? $50 $75 $160 $75 $160 $75 Select the correct answer. a. Both Projects 1 and 2, since both projects have NPV's > 0. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. Oc. Project 2, since the NPV2 > NPV1. Od. Neither Project 1 nor 2, since each project's NPV NPV2