Bridgeport Inc. now has the following two projects available:

Assume that $R_F=5\mathrm{.}8$ percent, risk premium $=11\mathrm{.}3$ percent, and beta $=1\mathrm{.}3.$ Use the chain replication approach to determine which

project Bridgeport Inc. should choose if they are mutually exclusive. $($Round cost of capital and final answers to $2$ decimal places,

e$.$g$\mathrm{.}17\mathrm{.}35\%$ or $2,513\mathrm{.}25.$

NPV $V_1$ generated over a six$-$year period

$NP{V}_2$ generated over a six$-$year period

should be chosen.