ols Free Spirit Industries Inc. is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both Italy and Canada, and the Italian project is expected to take six years, whereas the Canadian project is expected to take only three years. However, the firm plans to repeat the Canadian project after three years. These projects are mutually exclusive, so Free Spirit Industries Inc.'s CFO plans to use the replacement chain approach to analyze both projects. The expected cash flows for both projects follow: Project: Year : Year 1: Year 2: Italian - $700,000 $240,000 $270,000 $290,000 $250,000 $130,000 $110,000 Year 3: Year 4: Year 5: Year 6 Project: Year : Year 1: Year 2: Year 3: Canadian -$530,000 $280,000 $290,000 $310,000 ols If Free Spirit Industries Inc.'s cost of capital is 13%, what is the NPV of the Italian project? $191,470 $161,238 $171,315 $201.547 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 13%, what is the NPV of the Canadian project, using the replacement chain approach? $256,934 $270,457 $243,411 $297,503