Industrial Zone & Group, which operates in the building and construction industry in the South Caucasus, is considering making investments in one of two different regional projects. Project 1 would require an initial investment of \($100,000,\) will last for 8 years, and will generate annual free cash flows of \($20,000\) per year. Project 2 would require an initial investment of \($150,000,\) will last for 10 years, and will generate free cash flows of \($28,000\) per year. Assuming a 12 percent required rate of return on both projects, which project should the company choose and why?