Question: Question 8 (5 points) Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%,

Question 8 (5 points) Projects S and L are equally risky,

Question 8 (5 points) Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L's IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? C) If the WACC is 10%, both projects will have positive NPVs. If the WACC is 6%, Project S will have the higher NPV. If the WACC is 13%, Project S will have the lower NPV. If the WACC is 10%, both projects will have a negative NPV. O Project S's NPV is more sensitive to changes in WACC than Project L's

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