9. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives Blue Elk Manufacturing is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both France and Thailand, and the French project is expected to take six years, whereas the Thai project is expected to take only three years. However, the firm plans to repeat the Thai project after three years. These projects are mutually exclusive, so Blue Elk Manufacturing's CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow: Project: French Year 2: 1 Year 5: Year 6: Year 0: -$975,000 Year 1: $350,000 $370,000 Year 3: $390,000 Year 4: $320,000 $115,000 $80,000 Project: Thai Year 0: Year 1: Year 2: Year 3: -$520,000 $275,000 $280,000 $295,000 If Blue Elk Manufacturing's cost of capital is 13%, what is the NPV of the French project? O $211,082 O $191,893 O $172,704 O $201,488 Assuming that the Thai project's cost and annual cash inflows do not change when the project is repeated in three years and that the cost of capital will remain at 13%, what is the NPV of the Thai project, using the replacement chain approach? O $249,037 O $261,489 O $298,844 O $286,393