3. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) eBook Project S requires an initial outlay at t = 0 of $15,000, and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $35,000, and its expected cash flows would be $8,450 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer. a. Project S, because the NPVs > NPVL. Ob. Both Projects S and L, because both projects have NPV's > 0. c. Neither Project S nor L, because each project's NPV 0. e. Project L, because the NPVL > NPVS