Project S requires an initial outlay at t $=0$ of $$18,000,$ and its expected cash flows would be $$6,000$ per year for $5$ years. Mutually exclusive Project L requires an initial outlay at t $=0$ of $$28,500,$ and its expected cash flows would be $$11,600$ per year for $5$ years. If both projects have a WACC of $16\%,$ which project would you recommend?

Select the correct answer.

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

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

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

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

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