Question: The cash flows for two projects, A and B , are shown in the table, below. The cost of capital is 8 % . Notice

The cash flows for two projects, A and B, are shown in the table, below. The cost of capital is 8%. 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 A chain minus
the NPV of the Project B chain? Make your answer accurate to 2 decimal places.
Project Cash Flows
The cash flows for two projects, A and B, are shown

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