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You are considering two projects. Project 1 currently costs $12 million, which is to be paid this year; the returns are $8 million after year

You are considering two projects. Project 1 currently costs $12 million, which is to be paid this year; the returns are $8 million after year one and $6 million after year two. Project 2 currently costs $13 million, again to be paid this year; the returns are $7 million after year one and $9 million after year two. At an interest rate of 9%, the difference between the present value of Project 1's future revenues and Project 1's current costs is equal to----- , while the difference between the present value of Project 2's future revenues and Project 2's current costs is equal to---- . (Hint: Round intermediate calculations to two decimal places.) Suppose investing in one project eliminates the opportunity to invest in the other. Still assuming the interest rate is 9%, Project---is preferable.

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