Evaluating projects with unequal lives Cold Duck Manufacturing Inc. is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both Germany and Mexico, and the German project is expected to take six years, whereas the Mexican project is expected to take only three years. However, the firm plans to repeat the Mexican project after three years. These projects are mutually exclusive, so Cold Duck Manufacturing Inc.'s CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow: Project: German Year 0: -$800,000 Year 1: $380,000 Year 2: $400,000 $420,000 Year 3: Year 4: $375,000 Year 5: $110,000 Year 6: $85,000 Project: Mexican Year O: -$475,000 Year 1: $225,000 Year 2: $235,000 Year 3: $255,000 If Cold Duck Manufacturing Inc.'s cost of capital is 9%, what is the NPV of the German project? $627,320 $657,193 $597,448 $477,958 Assuming that the Mexican 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 9%, what is the NPV of the Mexican project, using the replacement chain approach? $201,163 $223,514 $268,217 $257,041