Question: Please explain the answer step by steps. Thank you! 18 The cash flows for two projects, A and B, are shown in the table, below.

Please explain the answer step by steps. Thank you! 18 The

Please explain the answer step by steps. Thank you!

18 The cash flows for two projects, A and B, are shown in the table, below. Notice that Project A has a life of 3 years and Project B has a 2-year life. Use the replacement chain approach to calculate the NPV of each project over a common life-span. What is the NPV of the Project B chain minus the NPV of the Project A chain? Note that the cost of capital is 8%. Year 0 155 100 62 62 2 3 A)*$0.29 B) $0.51 C)$0.75 D) $1.13 E) $1.15

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