13. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives RTE Telecom Inc. is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both France and Ukraine, and the French project is expected to take six years, whereas the Ukrainian project is expected to take only three years. However, the firm plans to repeat the Ukrainian project after three years. These projects are mutually exclusive, so RTE Telecom Inc.'s CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow: Project: Year 0: French -$1,120,000 Year 1: $370,000 Year 2: $390,000 Year 3: $420,000 Year 4: $330,000 Year 5: $220,000 Year 6 $95,000 Project: Ukrainian Year 0: -$490,000 Year 1: $250,000 Year 2: $265,000 Year 3: $275,000 If RTE Telecom Inc.'s cost of capital is 13%, what is the NPV of the French project? O $188,513 O $171,375 O $137,100 O $179,944 Assuming that the Ukrainian project's cost and annual cash inflows do not change when the project is repeated in three years and that the cost of capital will remain at 13%, what is the NPV of the Ukrainian project, using the replacement chain approach? O $219,016 O $262,819 O $ 197,114 O $251,868