Over$-$the$-$Top Canopies $($OTC$)$ is evaluating two independent investments. Project S costs $$170,000$ and has an IRR equal to $9$ percent, and Project L costs $$160,000$ and has an IRR equal to $7$ percent. OTC's capital structure consists of $20$ percent debt and $80$ percent common equity, and its component costs of capital are rdT $=4\%,$ rs $=11\%,$ and re $=14\mathrm{.}5\%.$ If OTC expects to generate $$260,000$ in retained earnings this year, which project$($s$)$ should be purchased? Round your answers to one decimal place.Over$-$the$-$Top Canopies $($OTC$)$ is evaluating two independent investments. Project S costs $$170,000$ and has an IRR equal to $9$ percent, and Project L costs

$$160,000$ and has an IRR equal to $7$ percent. OTC's capital structure consists of $20$ percent debt and $80$ percent common equity, and its component costs of

capital are $r_{dT}=4\%,r_s=11\%,$ and $r_e=14\mathrm{.}5\%.$ If OTC expects to generate $$260,000$ in retained earnings this year, which project$($s$)$ should be purchased?

Round your answers to one decimal place.

Thus,

should be purchased.