CAA is trying to choose between two mutually exclusive projects. Project 1 has a five-year expected life, an initial cost of $60,000 and a profitability index (PI) of 1.2. Project 2 has a 7-year expected life, an initial cost of $74,000 and a profitability index (PI) of 1.24. Both plan have conventional cash flows, can be repeated and that there are no anticipated changes in the cash flows. CAA required a return of 19% for both investments. What is the companys investment decision?