D Question 29 3.34 pts You are provided with the following data on two mutually exclusive projects. The cost of capital is 12%. Initial cash outflow Year 1 cash inflow Year 2 cash inflow NPV PI Project 1 Project 2 -$7,000 -$1,000 $7,000 $1,000 $3,500 $ 975 $2,040 $ 670 1.29 1.67 Which project should you accept? What is the problem that you should be concerned with in making this decision? O Project 1; the timing of cash flows O Project 2; project scale O Project 2; the timing of cash flows O Project 1; project scale