Your boss has asked you to evaluate two mechanization projects with the following cash flows:

Year Project One Project Two

1 $1 million $5 million

2 $2 million $4 million

3 $3 million $3 million

4 $4 million $2 million

5 $5 million $1 million

The estimated cost of capital for both projects is 7% and both projects will require an initial cash outlay of $5 million. Which project should you recommend to your boss?