Problem 11-11 Capital budgeting criteria: mutually exclusive projects Project S costs $15,000 and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $25,500 and its expected cash flows would be $10,300 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. O I. Project L, since the NPVL > NPVS. O II. Neither S or L, since each project's NPV 0. O IV. Project S, since the NPVS > NPVL. O V. Both Projects S and L, since both projects have IRR's > 0. Hide Feedback Incorrect