Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $150,000 and has an IRR equal to 12 percent, and Project L costs $140,000 and has an IRR equal to 10 percent. OTC’s capital structure consists of 20 percent debt and 80 percent common equity, and its component costs of capital are r_dT = 4%, r_s = 10%, and r_e = 12.5%. If OTC expects to generate $230,000 in retained earnings this year, which project(s) should be purchased?