Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $145,000 and has an IRR equal to 10 percent, and Project L costs $135,000 and has an IRR equal to 9 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 = 7%, and r_e = 8.5%. If OTC expects to generate $210,000 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, (only Project S,only Project L, both projects, neither project) Item 5 should be purchased.