Project S requires an initial outlay at t $=0$ of $$13,000,$ and its expected cash flows would be $$7,000$ per year for $5$ years. Mutually exclusive Project L requires an initial outlay at t $=0$ of $$29,000,$ and its expected cash flows would be $$14,950$ per year for $5$ years. If both projects have a WACC of $12\%,$ which project would you recommend?

Select the correct answer.

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

b$.$ Both Projects S and L$,$ since both projects have NPV$\text{'}$s $>0.$

c$.$ Project S$,$ since the NPVS $>$ NPVL$.$

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

e$.$ Project L$,$ since the NPVL $>$ NPVS$.$