Concord Inc. now has the following two projects available:

Project		Initial CF		After-tax CF1		After-tax CF2		After-tax CF3
1		-11,151		4,850		5,525		8,700
2		-3,061		3,350		2,750

Assume that R_F = 4.2%, risk premium = 9.7%, and beta = 1.2. Use the EANPV approach to determine which project(s) Concord Inc. should choose if they are mutually exclusive. (Round cost of capital to 2 decimal places, e.g.17.35% and the final answers to 0 decimal places, e.g. 2,513.)

a)PMT 1 = _______$

b )PMT 2 = _______$

c) Which project should be chosen ? (Project 1 or Project 2)