16.

Project 5 requires an initial outlay at t=0 of $15,000, and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Profect L requires an initial outlay at t=0 of $31,000, and its expected cash flows would be $9,200 per year for 5 years. If both projects have a WACC of 14%, which project would you recommend? Select the correct answer: A, Both Projects s and L, since both projects have NPVIs >0. b. Project L, since the NPV > NPV 5 : ci Prolects, since the NPNy z NPY. e. Both Projects S and L, since both projects hove RR=0