13. VZ is considering two additional higher risk projects with a required rate of return of 12%. Based on the following cash flows which project should VZ chose and why? (7 points) Year Project 1 cash flow 0 -320,000 1 115,000 2 159,000 3 132,000 Project 2 cash flow -260,000 35,000 58,000 249,000 risk free rate: 1.75% expected rate of return for the market: 9.5% Beta of VZ: 0.88 VZ total debt, interest and shares issued can be found in VZ financial statements assume market value of all debt is 100% of face(par) value. tax rate is 20% VZ stock price: $55 initial investment: 4,500,000 . year 1 cash flow: 1,100,000 year 2 cash flow: 1,200,000 year 3 cash flow: 1,350,000 year 4 cash flow: 1,550,000 year 5 cash flow: 1,750,000 please show steps Without Excel