13. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives Your company is considering starting a new project in either Spain or Mexico-these projects are mutually exclusive, so your boss has asked you to analyze the projects and then tell her which project will create more value for the company's stockholders. The Spanish project is a six-year project that is expected to produce the following cash flows: Project: Year 0: Spanish -$650,000 $220,000 Year 1: Year 2: $240,000 Year 3: $245,000 Year 4: $270,000 Year 5: $120,000 Year 6: $100,000 The Mexican project is only a three-year project; however, your company plans to repeat the project after three years. The Mexican project is expected to produce the following cash flows