3. Problem 11.11 (Capital Budgeting Criteria: Mutually Exclusive Projects) Project S requires an initial outlay at t=0 of $14,000, 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 $48,000, and its expected cash flows would be $9,300 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend? Select the correct answer. a. Project S, because the NPV > NPV L. b. Both Projects S and L, because both projects have IRR's >0. c. Project L, because the NPV > NPV s. d. Both Projects S and L, because both projects have NPV's >0. e. Neither Project S nor L, because each project's NPV