Question: Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) Question 15 of 20 Check My Work (3 remaining) eBook A firm with a WACC of 10%
Problem 11.10 (Capital Budgeting Criteria: Mutually Exclusive Projects) Question 15 of 20 Check My Work (3 remaining) eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: $55 $150 $180 $150 $180 $150 Project 1 -$300 $55 $55 Project 2 -$700 $300 $300 Which project would you recommend? Select the correct answer a. Both Projects 1 and 2, since both projects have IRR'S > 0. b. Both Projects 1 and 2, since both projects have NPV's > 0. c. Project 2, since the NPV2 > NPV1. d. Neither Project 1 nor 2, since each project's NPV NPV2. Check My Work (3 remaining)
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