Consider two projects, $T$ and $F,$ which are mutually exclusive, have unequal lives, and are repeatable. Their cash flows are depicted in the table below:

$\backslash$table$[[$Project$,$Year $0,$Year $1,$Year $2,$Year $3,$Year $4],[$T$,-$$$105$ million,$$62$ million,$$62$ million,,$],[$F$,-$$$105$ million,$$33$ million,$$33$ million,$$33$ million,$$33$ million$]]$

Assuming a WACC of $7\mathrm{.}5\%,$ use the replacement chain approach $($RCA$)$ to compare the projects and pick the better choice, given repetition. Note that the investment in project $T$ rises by $7\%$ when repeated, but the other cash flows stay the same.

Project $F$ is preferable without repetition, and $T$ is preferable with repetition

Project $F$ is better as its NPV is higher by $$797,274$

Project $T$ is better as its NPV is higher by $$797,274$

Project $F$ is better as its NPV is higher by $$89,657$

Project $T$ is better as its NPV is higher by $$89,657$