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A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1...

A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$500 $70 $70 $70 $235 $235 Project 2 -$400 $250 $250 $140 $140 $140 Which project would you recommend? Select the correct answer. a. Project 2, since the NPV2 > NPV1. b. Neither Project 1 nor 2, since each project's NPV < 0. c. Project 1, since the NPV1 > NPV2. d. Both Projects 1 and 2, since both projects have NPV's > 0. e. Both Projects 1 and 2, since both projects have IRR's > 0.

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