Project S requires an initial outlay at t $=0$ of $$17,000,$ and its expected cash flows would be $$5,500$ per year for $5$ years. Mutually exclusive Project L requires an initial outlay at t $=0$ of $$44,000,$ and its expected cash flows would be $$13,650$ per year for $5$ years. If both projects have a WACC of $13\%,$ which project would you recommend?

Select the correct answer.

a$.$ Project L$,$ because the NPVL $>$ NPVS$.$

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

c$.$ Project S$,$ because the NPVS $>$ NPVL$.$

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

e$.$ Neither Project S nor L$,$ because each project's NPV $<0.$