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how to do you get the values for the replacement chain approach?

for question K. I dont understand how to apply the replacement chain approach to compete part 3 of this question

0 Step 51 of 55 Done (3) Compute the NPV for Project T and Project F by applying the replacement chain approach as follows: Present valae Project T Project F Year factor at 10% A (Bx C) (BxE) Present values $100,000 $54.545 Cash Sows Cash lows Present value $100.000 S33,500 $33.500 $100,000 0 10000 $100,000 $60,000 09091 $30.455 08264 $40.000 $33.058 $27,686 $25.169 $22 881 7 $60.000 $45.079 $33,500 07513 0.6830 $60000 NPV 4 S40,981 $7.547 $33.500 NPV $6,190 L and S are (3) What is the difference between the regular and discounted payback periodo If they are mutually exclusive? (4) What is the main disadvantage of discounted payback? Is the payback method o any real usefulness in capital budgeting decisions? separate project (Project P), you are considering sponsorship of a pavilion at th upcoming World's Fair. The pavilion would cost $800,000, and it is expected to resl As a in $5 million of incremental cash inflows during its single year of operation. However, return it to its original condition. Thus, Project P's expected net cash flows lock x it would then take another year, and $5 million of costs, to demolish the site and this (in millions of dollars): Year Net Cash Flows -$0.8 5.0 2 -5.0 The project is estimated to be of average risk,, so its cost of capital is 10 %. (1) What are normal and nonnormal cash flows? (2) What is Project P's NPV? What is its IRR? Its MIRR? (3) Draw Project P's NPV profile. Does Project P have normal or nonnormal cash flows? Should this project be accepted? k. In an unrelated analysis, you have the opportunity to choose between the following two mutually exclusive projects, Project T (which lasts for two years) and Project F (which lasts for four years): Expected Net Cash Flows Project F Project T Year -$100,000 -$100,000 33,500 60,000 1 33,500 60,000 2 33,500 3 33,500 4 The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have a 10% cost of capital. (1) What is each project's initial NPV without replication? (2) What is each project's equivalent annual annuity? (3) Apply the replacement chain approach to determine the projects extended NPVs Which project should be chosen? (4) 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

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