Project S requires an initial outlay at t $=0$ of $$19,000,$ and its expected cash flows would be $$4,000$ per year for $5$ years. Mutually exclusive Project L requires an initial outlay at t $=0$ of $$36,500,$ and its expected cash flows would be $$11,200$ per year for $5$ years. If both projects have a WACC of $14\%,$ which project would you recommend?

Select the correct answer.

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

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

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

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

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