15. The replacement chain approach- Evaluating prejects with unequal lives Aa Evaluating projects with unequal lives RTE Telecomm is a US firm that wants to expand its business internationery It is onsidering potential pr ects in both Germany and Ukraine, and the German project is expected to take six years, whereds the Ukrman progect is expected to take only three years However, the firm plans to repeat the Ukrainian project after three years. These prajects are mutualy exdlusive, so RTE Telecomem's CFO plans to use the replacement chain approach to analyze both projects. The expected cash fows for both projects follow: project ofter three years. These project If RTE TClocomm's cost of capital is 9%. what is the NPV of the German project? Project: German Year 1: $240,000 Year 2 $270,000 Yeor 3: $290,000 Year 4: $250,000 Yeer 5: $130,000 Year 6 $110,000 roject Ukrainian Year 0: 5530,000 Year 1: $280,000 Year 2:11$290,000 Year 3: $310,000 O $283,629 O 5328,4123 O 5298,557 O 5313485 Assuming that the Ukrainian project's cost and annuel cesh ilows do hot chag shen tepredectis repeated in hree yeens and that the cost of capital will remain at 9%, what s NPV of the ukrainan priateo, uwag the-eplacement aan appronch O $410,047 5372,770 s335493 $354 132