Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to evaluate capital expenditure projects. Assuming the two projects have the costs and cash flows shown below, determine the NPV for each using a replacement chain. NB. Assume in two years Project S will still cost $70,000 and produce the same two years of cash flows. (2 marks)

Years	Project S	Project T
0	-70,000	-100,000
1	50,000	60, 000
2	60,000	70,000
3	80, 000
4	90,000