Need step by step solution for these questions. Thank you.

Projects with unec > Projects With unec x?Chapter 15 NPVand IRR usr ervlet/ 1010000003c9f1db01000008ck m 151220059 Average: 12 13. The replacement chain approach- Evaluating projects with unequal lives Evaluating projects with unequal lives Your company is considering starting a new project in either Spain or Mexico-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 foilowing cash flows The Mexican project is only a three-year project, however, your company plars to repeat the project after three years. The Mexican project is expected to produce the following cash flows Project: Spanish Year 0: $700,000 Year 1: $240,000 Year 2: $270,000 Year 3: $290,000 Year 4: $250,000 Year S: 130,000 Year 6: $110,000 Project: Mexican Yeer 0: -$530,000 Year 1: $280,000 Year 2: 290,000 Year 3: $310,000 Because the projects have unequal lives, you have deciled to use the replacement chain approach to evaluate them. You have determined that the appropriate cost of capital for both grojects is11%. Assuming that the Mexican project's cost and annusil cash infhows do not change when the project is repeated in three years and that the cost or capital rem ans at 11%, filout the following table: NPV Spanish project NPV Hexican project o,, 2 4