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Evaluating projects with unequal lives RTE Telecom Inc, is a U.S. firm that wants to expand its business internationally, It is considering potential projects in

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Evaluating projects with unequal lives RTE Telecom Inc, is a U.S. firm that wants to expand its business internationally, It is considering potential projects in both France and Canada, and the French profect is expected to take six years; whereas the Canadian project is expected to take only three vears. However, the firm plans to repeat the Canadian prolect after three years. These projects are mutually exclusive, so RTE Telecom Incis CFO plans to use the replacement chain approach to analyze both projects, The expected cash flows for both projects follow: If RTE Telecom Incis cost of capital is 11%, what is the NPV of the French project? $247,592 $272,351 5198,074 $235,212 Assuming that the Canadian 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 11%, what is the NPy of the Canadian project, using the replacement chain approach? $75,617 584,019 $92,421 $100.823

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