Q15 A firm with a WACC of 10% is considering the following mutually exclusive...
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Q15
A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 2 3 4 5 $70 $135 $215 $135 $215 $135 Project 1 -$350 $70 $70 Project 2 -$600 $350 $350 Which project would you recommend? Select the correct answer. O a. Project 2, since the NPV2 > NPV1. O b. Project 1, since the NPV1 > NPV2. c. Both Projects 1 and 2, since both projects have IRR's > 0. d. Both Projects 1 and 2, since both projects have NPV's > 0. e. Neither Project 1 nor 2, since each project's NPV
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