3. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives RTE Telecomm is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both Germany and Canada, and the German project is expected to take six years, whereas the Canadian project is expected to take only three years. However, the firm plans to repeat the Canadian project after three years. These projects are mutually exclusive, so RTE Telecomm's CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow: If RTE Telecomm's cost of capital is 12%, what is the NPV of the German project? $202,895$223,185$162,316$192,750 Assuming that the Canadian 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 12%, what is the NPV of the Canadian project, using the replacement chain approach? $352,979$264,734$294,149$323,564