3. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) Project S requires an initial outlay at t=0 of $12,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t=0 of $41,000, and its expected cash flows would be $12,500 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. a. Both Projects S and L, because both projects have IRR's >0. b. Project L, because the NPVL > NPV c. Both Projects S and L, because both projects have NPV's >0. d. Project S, because the NPV > NPV L. e. Neither Project S nor L, because each project's NPV