2. Exxon Mobil (XOM) is currently considering a project to expand operations to new drilling locations and at the same time a project to update several of their existing oil rigs. The two projects are mutually exclusive. The project to expand into new locations requires an initial investment of $2,500,000 at t=0 and the expected cash flows are $450,000 per year for the next 10 years. The project to update existing stores requires an initial investment of $250,000 at t=0 and the expected cash flows are $100,000 per year for the next 6 years. If both projects have a WACC of 11%, which project should XOM select