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Project B has an initial cost of $1.4 million with expected cashflows as follows: Year 1 = 335,000, Year 2 = 450,000, Year 3 =

Project B has an initial cost of $1.4 million with expected cashflows as follows: Year 1 = 335,000, Year 2 = 450,000, Year 3 = 525,000, Year 4 = 670,000, Year 5 = 430,000

Project C has an initial cost of $2.7 million with expected cashflows as follows: Year 1 = 1.9 million, Year 2 = 970,000, Year 3 = 860,000

The firm's cost of capital is 7%.

Calculate the expected NPV for each project under the replacement chain method.

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