13. The replacement chain approach - Evaluating projects with unequat lives Evaluating projects with unequal lives Your company is considering starting a new project in either Spain or Ukraine-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 flow Project: Spanish $650,000 Year 0 Year 1: $220,000 Year 2 $240,000 $245,000 Year 3: Year 4: $270,000 $120,000 Year 5 Year 6 $100,000 The Ukrainian project is only a three-year project; however, your corniceny plans to repeat the project aftes tree years. The Ukrainian projects expected to produce the following cash flows: Ukrainian Project: Year : $425,000 $175,000 Year 1: Year 2: $200,000 Year 3: $210,000 Because the projects have unequal lives, you have decided to use the replacement chein approach to evaluate them. You have determined that the appropriate cost of capital for both projects is 11%. 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 remains at 11%, answer the following questions: The NPV or the Spanish projects 5202.199 $213.432 C$179,732 $224,665 The NPV of the Ukrainian project 0592421 588,220 $84,019 $25,62