The cash flows for two mutually exclusive projects are in the table below. Project A concerns...

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The cash flows for two mutually exclusive projects are in the table below. Project A concerns the refurbishment of current production equipment, Project B concerns purchasing new equipment. A discount rate of 18% is used, and the Net Present Values are also provided in the table. Project A: Refurbisment Energy Maintenance Market value Total CF NPV Project B: New Trade-in old Energy Maintenance Market value Total CF NPV 18% 0 h. Annual worth; i. Fictitious liquidation. j. -€ 60,000 -€ 12,400 -€ 4,000 -€ 60,000 -€ 16,400 -€ 85,342 -€ 138,000 € 15,000 -€ 6,000 -€ 1,800 -€ 123,000 -€ 7,800 -€ 133,701 2 -€ 12,648 -€ 4,080 -€ 16,728 -€ 6,120 -€ 1,836 -€ 7,956 3 -€ 12,901 -€ 4,162 € 18,000 € 937 -€ 6,242 -€ 1,873 -€ 8,115 -€ 6,367 -€ 1,910 € 21,000 € 12,723 These projects have unequal lives. Discuss the three different methods mentioned below to correct this in discounted cash flow analysis, and apply each in a calculation: Repeatability assumption; Which of these methods will always lead to the same conclusions (in terms of ranking projects), and which of these methods may lead to different conclusions? These projects also have different risks, with Project A being riskier. k. For these projects, would it be correct to apply a higher discount rate for Project A compared to Project B to reflect the higher risk? Explain your answer. The cash flows for two mutually exclusive projects are in the table below. Project A concerns the refurbishment of current production equipment, Project B concerns purchasing new equipment. A discount rate of 18% is used, and the Net Present Values are also provided in the table. Project A: Refurbisment Energy Maintenance Market value Total CF NPV Project B: New Trade-in old Energy Maintenance Market value Total CF NPV 18% 0 h. Annual worth; i. Fictitious liquidation. j. -€ 60,000 -€ 12,400 -€ 4,000 -€ 60,000 -€ 16,400 -€ 85,342 -€ 138,000 € 15,000 -€ 6,000 -€ 1,800 -€ 123,000 -€ 7,800 -€ 133,701 2 -€ 12,648 -€ 4,080 -€ 16,728 -€ 6,120 -€ 1,836 -€ 7,956 3 -€ 12,901 -€ 4,162 € 18,000 € 937 -€ 6,242 -€ 1,873 -€ 8,115 -€ 6,367 -€ 1,910 € 21,000 € 12,723 These projects have unequal lives. Discuss the three different methods mentioned below to correct this in discounted cash flow analysis, and apply each in a calculation: Repeatability assumption; Which of these methods will always lead to the same conclusions (in terms of ranking projects), and which of these methods may lead to different conclusions? These projects also have different risks, with Project A being riskier. k. For these projects, would it be correct to apply a higher discount rate for Project A compared to Project B to reflect the higher risk? Explain your answer.