13. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives Blue Elk Manufacturing is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both Spain thaing the Thai project after three years. These projects are mutually exclusive, so Blue Elk Manufacturing's CFO plans to use the replaceme approach to analyze both projects. The expected cash flows for both projects follow: \begin{tabular}{ll} Project: & Spanish \\ \hline Year 0: & $975,000 \\ Year 1: & $350,000 \\ Year 2: & $370,000 \\ Year 3: & $390,000 \\ Year 4: & $320,000 \\ Year 5: & $115,000 \\ Year 6: & $80,000 \end{tabular} If Blue Elk Manufacturing's cost of capital is 9%, what is the NPV of the Spanish project? $307,814 $277,033 $261,642$292,423 Assuming that the Thai project's cost and annual cash inflows do not change when the project is repeated in three years and that the cost of will remain at 9%, what is the NPV of the Thai project, using the replacement chain approach