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Calculate the replacement chain NPV for the following 2 projects. The firm's cost of capital is 8.7%. Project C cashflows Year 0 = (845,000), Year
Calculate the replacement chain NPV for the following 2 projects. The firm's cost of capital is 8.7%.
Project C cashflows
Year 0 = (845,000), Year 1 = 364,000, Year 2 = 266,000, Year 3 = 246,000, Year 4 = 141,000, Year 5 = 127,000
Project D cashflows
Year 0 = (935,000), Year 1 = 567,000, Year 2 = 423,000, Year 3 = 392,000, Year 4 = 236,000
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