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5. Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L's

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5. Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L's IRR is 12%. The two projects have the same NPV when the WACC is 7\%. Which of the following statements is CORRECT? You have to provide NPV profile graph to justify your answer. (20 points) No graph No point!! a. If the WACC is 6%, Project S will have the higher NPV. b. If the WACC is 10%, both projects will have positive NPVs. c. If the WACC is 10%, both projects will have a negative NPV. d. If the WACC is 13%, Project S will have the lower NPV. e. Project S's NPV is more sensitive to changes in WACC than Project L's

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