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7. A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 5 3. o 4 3. O 10. Project 2 $190 $150 Project 1 -$400 $40 $40 $40 $190 -5550 $350 $350 $150 $150 Which project would you recommend? Select the correct answer. 4. Both Projects 1 and 2 since both projects have NPV'S>0. b. Neither Project 1 nor 2, since each project's NPV <0, c. Project 1, since the NPV > NPV2 d. Both Projects 1 and 2, since both projects have IRR's > 0. O e. Project 2, since the NPV2> NPVI. Check My Work (2 remaini 0 Icon ko
Project L requires an initial outlay at t = 0 of $46,000, its expected cash inflows are $12,000 per year for 7 years, and its WACC IS 13% What is the project's payback? Round your answer to two decimal places. years