Over$-$the$-$Top Canopies $($OTC$)$ is evaluating two independent investments. Project S costs $$140,000$ and has an IRR equal to $10$ percent, and Project L costs $$130,000$ and has an IRR equal to $9$ percent. OTC's capital structure consists of $20$ percent debt and $80$ percent common equity, and its component costs of capital are rdT $=3\%,$ rs $=10\%,$ and re $=13\mathrm{.}5\%.$ If OTC expects to generate $$200,000$ in retained earnings this year, which project$($s$)$ should be purchased? Round your answers to one decimal place.

Project WACC Acceptable?

S

$\%$

$-$Select$-$

L

$\%$

$-$Select$-$

Thus,

$-$Select$-$

should be purchased.