The operations team at an engineering firm is considering investing in two different projects, but they only have the funds to invest in one project.

Project $1$ requires an initial investment of $$650,000$ and another investment of $$250,000$ at the end of year $2.$ The project will generate annual profits of $$200,000$ starting in year $2$ until the end of the project in year $5.$ At the end of the project, the firm can sell the project for $$500,000.$

Project $2$ requires an initial investment of $$800,000$ and another investment of $$200,000$ at the end of year $3.$ The project will generate annual profits of $$150,000$ starting in year $1$ until the end of the project in year $5.$ At the end of the project, the firm can sell the project for $$600,000.$

The firm$$s cost of capital is $9\%.$ Which project should the firm pick?