Project 1 2 Initial CF -10,799.61 -2,950.85 After-tax CF1 4,750 3,250 NPV1generated over a six-year period $ NPV2 generated over a six-year period $ should be chosen. After-tax CF2 5,375 Assume that RF = 4.0 percent, risk premium = 9.5 percent, and beta = 1.3. Use the chain replication approach to determine which project Flounder 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.) 2,650 After-tax CF3 8,500

Assume that RF=4.0 percent, risk premium =9.5 percent, and beta =1.3. Use the chain replication approach to determine which project Flounder 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