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Project S costs $18,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $28,000 and its

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Project S costs $18,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $28,000 and its expected cash flows would be $8,700 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. a. Project S, since the NPVs > NPVL. O b. Neither Project S nor L, since each project's NPV 0. O d. Project L, since the NPVL > NPVs. e. Both Projects S and L, since both projects have IRR's > 0

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