Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $175,000 and has an IRR equal to 14 percent, and Project L costs $165,000 and has an IRR equal to 12 percent. OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are r_dT = 5%, r_s = 8%, and r_e = 11.5%. If OTC expects to generate $270,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place.

Project	WACC	Acceptable?
S	%	-Select-YesNoItem 2
L	%	-Select-YesNoItem 4

Thus, -Select-only Project Sonly Project Lboth projectsneither projectItem 5 should be purchased.