Project $S$ requires an initial outlay at $t=0$ of $$15,000,$ and its expected cash flows would be $$5,500$ per year for $5$ years. Mutually exclusive Project $L$ requires an initial outlay at $t=0$ of $$34,500,$ and its expected cash flows would be $$13,850$ per year for $5$ years. If both projects have a WACC of $13\%,$ which project would you recommend?

Select the correct answer.

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

b$.$ Project S$,$ because the NPV $V_S>V_L.$

c$.$ Project $L_{,},$ because the $NP{V}_L>NP{V}_s.$

d$.$ Neither Project $S$ nor $L,$ because each project's NPV

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