Project S requires an initial outlay at t 0 of $11,000, and its expected cash flows would be $6,000 per year for 5 years Mutually exclusive Project L requires an initial outlay at t 0 of $39,000, and its expected cash flows would be $8,350 per year for 5 years If both projects have a WACC of 12 , which project would you recommend Select the correct answer a Both Projects S and L, since both projects have NPV's 0 b Project S, since the NPV S NPV L c Project L, since the NPV L NPV S d Both Projects S and L, since both projects have IRR's 0 e Neither Project S nor L, since each project's NPV 0 Project S requires an initial outlay at t 0 of $11,000, and its expected cash flows would be $6,000 per year for 5 years Mutually exclusive Project L requires an initial outlay at t 0 of $39,000, and its expected cash flows would be $8,350 per year for 5 years If both projects have a WACC of 12 , which project would you recommend Select the correct answer O a Both Projects S and L, since both projects have NPV's 0 O b Project S, since the NPV5 NPVL O c Project L, since the NPVL NPVS O d Both Projects S and L, since both projects have IRR's 0 O e Neither Project Snor L, since each project's NPV 0

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Question: Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $6,000 per year for 5 years.

Select the correct answer.

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

b. Project S, since the NPV_S > NPV_L.

c. Project L, since the NPV_L > NPV_S.

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

e. Neither Project S nor L, since each project's NPV < 0. student submitted image, transcription available below

Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $6,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $39,000, and its expected cash flows would be $8,350 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. O a. Both Projects S and L, since both projects have NPV's > 0. O b. Project S, since the NPV5 > NPVL O c. Project L, since the NPVL > NPVS. O d. Both Projects S and L, since both projects have IRR's > 0. O e. Neither Project Snor L, since each project's NPV <0

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