Question e BOOK. O Problem 11-11 Capital budgeting criteria: mutually exclusive projects Project S c

Question

e BOOK. O Problem 11-11 Capital budgeting criteria: mutually exclusive projects Project S costs $10,000 and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L costs $42,500 and its expected cash flows would be $10,400 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer. O I. Project L, since the NPVL> NPVs. II. Neither S or L, since each project's NPV o. III. Project S, since the NPVs NPVu. o IV Both Projects s and L since both projects have IRR's 0. 3 v Both Projects s and L, since both projects have NPws 0 Hide Feedback Incorrect Check My work (No more tries available)