zelluse corp is considering two mutually exclusive projects, a

and b. project a cost $50,000 and is expected to generate $38,000

in year one and $30,000 in year two. Project b costs $70,000 and is

expected to generate $24,000 in year one $32,000 in year two,

$23,000 in year three and $29,000 in year four. Zelluose Corp has

required rate of return for these projects is 12%. whixh project would reccomend using the replacement chain method to evaluate the projects with different live?

A) Project B because the replacement chain NPV for project A is only $10,972

B) project A because its replacement chain NPV is $ 14,098, which exceeds the NPV for project B.

C) Project A because its replacment chain NPV is $15,689 which exceeds the NPV for projects B.

D)Project B because its NPV is higher than projects A's NPV.