Project S requires an initial outlay at t = 0 of $20,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $25,000, and its expected cash flows would be $11,950 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer.

a. Project L, since the NPVL > NPVS.

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

c. Project S, since the NPVS > NPVL.

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