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Project S costs $12,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $42,000 and its

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Project S costs $12,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $42,000 and its expected cash flows would be $8,500 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend? Select the correct answer. a. Both Projects S and L, since both projects have IRR's > 0. b. Project L, since the NPVL > NPVS. c. Project S, since the NPVs > NPVL. d. Neither Project Snor L, since each project's NPV 0

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