Evaluating projects with unequal lives

Savory Seafood Inc. 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 Savory Seafood Inc.$$s CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow:

Project:

French

Year $0$: $$$$800,000$

Year $1$: $$380,000$

Year $2$: $$400,000$

Year $3$: $$420,000$

Year $4$: $$375,000$

Year $5$: $$110,000$

Year $6$: $$85,000$

Project:

Thai

Year $0$: $$$$425,000$

Year $1$: $$175,000$

Year $2$: $$200,000$

Year $3$: $$210,000$

If Savory Seafood Inc.$$s cost of capital is $10\%,$ what is the NPV of the French project?

$$535,797$

$$479,397$

$$563,997$

$$507,597$

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 $10\%,$ what is the NPV of the Thai project, using the replacement chain approach?

$$100,099$

$$105,104$

$$95,094$

$$110,109$