Project S requires an initial outlay at t = 0 of $14,000, and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $26,500, and its expected cash flows would be $11,200 per year for 5 years. If both projects have a WACC of 16%, 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 IRR's > 0.

c. Both Projects S and L, since both projects have NPV's > 0.

d. Project L, since the NPVL > NPVS. e. Project S, since the NPVS > NPVL.