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Martinez Inc. now has the following two projects available: Project 1 2 Initial CF -11,336.84 -3,091.79 After-tax CF1 4,800 3,300 After-tax CF2 5,450 2,700 After-tax

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Martinez Inc. now has the following two projects available: Project 1 2 Initial CF -11,336.84 -3,091.79 After-tax CF1 4,800 3,300 After-tax CF2 5,450 2,700 After-tax CF3 8,600 Assume that RF = 4.1 percent, risk premium = 9.6 percent, and beta = 1.1. Use the chain replication approach to determine which project Martinez Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g.17.35% or 2,513.25.) NPV1 generated over a six-year period $ 2700 NPV2 generated over a six-year period $ 1840 Project 1 should be chosen

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