Vaughn Inc. now has the following two projects available:

Assume that $R_F=4\mathrm{.}9$ percent, risk premium $=10\mathrm{.}4$ percent, and beta $=1\mathrm{.}3.$ Use the chain replication approach to determine which

project Vaughn 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 $1$ generated over a six$-$year period $

NPV $2$ generated over a six$-$year period $

should be chosen.