3. Problem 11.11 (Capltal Budgeting Criteriat Mutually Exclusive Projects) Project S requires an initial outlay at t=0 of $18,000, and its expected cash flows would be $6,000 per year for 5 years. Mutually exelusive Project L requires an initial outiay at t= 0 of $36,500, and its expected cash flows would be $13,800 per year for 5 years. If both projects have a wacC of 13%, which project wauld you recemmend? Select the correct answer. 1. Both Projects S and L, because both projects have NPV's >0. b. Project L, because the NPV > N NPV . c. Neither Project S nor L, because each project's NPV NPVL. e. Both Projects S and L, because both projects have IRR's >0