Project S requires an initial outlay at t = 0 of $18,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $29,500, and its expected cash flows would be $14,350 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend?

Select the correct answer.

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

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

c. Project S, because the NPVS > NPVL.

d. Project L, because the NPVL > NPVS.

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

Project S requires an initial outlay at t=0 of $18,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t=0 of $29,500, and its expected cash flows would be $14,350 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer. a. Both Projects S and L because both projects have NPVs >0. b. Both Projects 5 and L, because both projects have iRR's >0. c. Project 5 , because the NPVS > NPVL. d. Project L, because the NPVL > NPVs e. Neither Project S nor L because each project's NPV