In an unrelated analysis, you have the opportunity to choose between the following two mutually exclusive projects, Project T (which lasts for 2 years) and Project F (which lasts for 4 years):

Expected Net Cash Flows
Years	Project T	Project F
0	($100,000)	($100,000)
1	60000	33500
2	60000	33500
3		33500
4		33500

Questions: Please show work in excel

(1) What is each projects equivalent annual annuity?

(2) Apply the replacement chain approach to determine the projects extended NPVs. Which project should be chosen?

(3) Assume that the cost to replicate Project T in 2 years will increase to $105,000 due to inflation. How should the analysis be handled now, and which project should be chosen?