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Project S requires an initial outlay at t=0 of $20,000, and its expected cash flows...

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Project S requires an initial outlay at t=0 of $20,000, and its expected cash flows would be $5,500 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t=0 of $25,000, and its expected cash flows would be $13,000 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Select the correct answer. a. Both Projects S and L, since both projects have IRR 's >0. b. Project S, since the NPVS>NVL. c. Neither Project S nor L, since each project's NPV 0. e. Project L, since the NPV >NPVS

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