Larkspur Inc. now has the following two projects available:

ProjectInitial CFAfter-tax CF₁After-tax CF₂After-tax CF₃1-11,3374,8005,4508,6002-3,0923,3002,700

Assume that R_F= 4.1%, risk premium = 9.6%, and beta = 1.1. Use the EANPV approach to determine which project(s) Larkspur 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.)

PMT_{1 =} $

PMT_{2 =} $

Which should be chosen (Project 1 or Project 2)