Project S costs $$18,000$ and its expected cash flows would be $$6,500$ per year for $5$ years. Mutually exclusive Project L costs $$48,000$ and its expected cash flows would be $$8,200$ per year for $5$ years. If both projects have a WACC of $16\%,$ which project would you recommend?

Select the correct answer.

a$.$ Project S$,$ since the NPVS $>$ NPVL$.$

b$.$ Both Projects S and L$,$ since both projects have NPV$\text{'}$s $>0.$

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

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

e$.$ Project L$,$ since the NPVL $>$ NPVS$.$