ERIA: MUTUALLY EXCLUSIVE PROJECTS CAPITIAL BUDGETING Project S costs $20,000 and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L costs $47,500 and its expected cash flows would be $13,600 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, since both projects have NPVs > b.Project L, since the NPVL>NPVS O c. Both Projects S and L, since both projects have IRR's> 0. O d. Project S, since the NPVs> NPV O e. Neither Project S nor L, since each project's NPV