A company is analyzing two mutually exclusive projects, S and L$,$ whose cash flows are shown below:

Years $01234$

S $-1,10090035010010$

L $-1,1000300550850$

The company's cost of capital is $12$ percent, and it can get an unlimited amount of capital at that cost. Which project should the company choose based on NPV and IRR? What should be the final choice?

Question options:

$($a$)$ Based on NPV$,$ choose project S; based on IRR, choose project L$.$ The company should choose project L$.$

$($b$)$ Based on NPV$,$ choose project L; based on IRR, choose project S$.$ The company should choose project S$.$

$($c$)$ Based on NPV$,$ choose project L; based on IRR, choose project S$.$ The company should choose project L$.$

$($d$)$ Based on NPV$,$ choose project S; based on IRR, choose project S$.$ The company should choose project S$.$