Project S costs $19,000 and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L costs $32,000 and its expected cash flows would be $8,850 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer.

a. Project L, since the NPVL > NPVS.

b. Both Projects S and L, since both projects have NPV's > 0

. c. Both Projects S and L, since both projects have IRR's > 0.

d. Neither Project S nor L, since each project's NPV < 0.

e. Project S, since the NPVS > NPVL.