Project S costs $18,000 and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L costs $26,500 and its expected cash flows would be $12,100 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer.

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