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k=10% CF 0 CF 1 CF 2 CF 3 CF 4 Project S (40) 60 50 END END Project L (80) 70 60 50 40

k=10% CF0 CF1 CF2 CF3 CF4
Project S (40) 60 50 END END
Project L (80) 70 60 50 40

The above are estimated cash flows of two potential Projects of Unequal Lives. Using the Replacement Chain Approach to Project S [with the shorter project life of 2 years] and making NO adjustments to its replicated cash flows [with regard to cost inflation and cash inflow], the Net Present Value NPV becomes $________. [TWO-decimal places]

Instructions: You do not need to show work. Just calculate this and type your answer in the box below in number format to TWO-decimal places. For example, 543.12 would be acceptable, while 543.1234 and 543.123 and 543.1 would be auto-graded incorrectly.

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