rojects S and L both have an initial cost of $10,000, followed by a serie: f positive cash inflows. Project S's undiscounted net cash flows total 20,000 , while L's total undiscounted flows are $30,000. At a WACC of 0%, the two projects have identical NPVs. Which project's NPV is more ensitive to changes in the WACC? a. Project L. b. The solution cannot be determined because the problem gives us no information that can be used to determine the projects' relative IRRs. c. Project S. d. Neither project is sensitive to changes in the discount rate, since both have NPV profiles that are horizontal. e. Both projects are equally sensitive to changes in the WACC since their NPVs are equal at all costs of capital