Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

= %

Project S requires an initial outlay at t = 0 of $12,000, and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $32,000, and its expected cash flows would be $7,600 per year for 5 years. If both projects have a WACC of 14%, which project would you recommend?

Select the correct answer.

a. Both Projects S and L, since both projects have NPV's > 0.

b. Neither Project S nor L, since each project's NPV < 0.

c. Project L, since the NPVL > NPVS.

d. Project S, since the NPVS > NPVL.

e. Both Projects S and L, since both projects have IRR's > 0.