Project S requires an initial outlay at t = 0 of $20,000, and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $26,000, and its expected cash flows would be $9,550 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer.

a. Neither Project S nor L, since each project's NPV < 0. b. Both Projects S and L, since both projects have NPV's > 0. c. Project L, since the NPVL > NPVS. d. Both Projects S and L, since both projects have IRR's > 0. e. Project S, since the NPVS > NPVL

-A project has annual cash flows of $5,500 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 12.89%. If the firm's WACC is 12%, what is the project's NPV?