Wildhorse Inc. now has the following two projects available:

Assume that $R_F=4\mathrm{.}5$ percent, risk premium $=10\mathrm{.}0$ percent, and beta $=1\mathrm{.}2.$ Use the chain replication approach to determine which

project Wildhorse 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

$NP{V}_2$ generated over a six$-$year period