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with a cost of capital of 8%. (Replacement Chain) Two mutually exclusive projects have unequal lives. Project is a lesser quality product that is expected to have an economic life of 5 years, while project B is more expensive with a longer useful life of 10 years. The firm has a required rate of retum of 10% and each project has free cash flows below. Use the replacement chain method of capital budgeting to select the best project Project A Initial cost Year 1 Year 2 -$70,000 $15,000 $15,000 $15,000 $15,000 $15,000 Year 3 Year 4 Year 5 | Year 6 Year 7 Project B 1-$100,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Year 8 Year 9 Year 10