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 -$500 $45 $45 Project 2 - $600 $350 $350 Which project would you recommend? $45 $40 $185 $40 $185 $40 Select the correct answer. Oa. Project 1, since the NPV1 > NPV2. Ob. Project 2, since the NPV2 > NPV1. Oc. Neither Project 1 nor 2, since each project's NPV 0. Oe. Both Projects 1 and 2, since both projects have NPV's > 0