12-2: Net Present Value (NPV) Capital budgeting criteria: mutually exclusive projects Project S costs $10,000 and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L costs $49,500 and its expected cash flows would be $8,000 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. O I. Project L, since the NPVL > NPVS. O II. Both Projects S and L, since both projects have NPV's > 0. O III. Neither Sor L, since each project's NPV NPVL. O V. Both Projects S and L, since both projects have IRR's >0