Project requires an initial outlay at t = 0 of $10,000, and its expected cash flows would be 6,000 per year for 5 years. Mutually exclusive Project L requires an initial at t = 0 of $49,000, and its expected cash flows would be $13,350 per year for 5 years. If both projects have a WACC of 13% which project would you recommend?

a. Project S, because the NPV S> NPV L - b. Neither Project S nor L, because each project's NPV 0. d. Both Projects S and L, because both projects have NPV's >0. e. Project L, because the NPVL>NPVS