Project: German Year 0: -$800,000 Year 1: $380,000 Year 2: $400,000 Year 3: $420,000 Year 4: $375,000 Year 5: $110,000 Year 6: $85,000 Project: Ukrainian Year 0: -$520,000 Year 1: $275,000 Year 2: $280,000 Year 3: $295,000 If Free Spirit Industries Inc.'s cost of capital is 11%, what is the NPV of the German project? 

Assuming that the Ukrainian 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 11%, what is the NPV of the Ukrainian project, using the replacement chain approach?  

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the German project and the NPV of the Ukrainian project us... View the full answer