Replacement Analysis of Mutually Exclusive Projects of Unequal Lives Using Kelly Specific Real Option Criterion

Table 2

for single life cycle and infinite planning horizon for A and B.

MARR (%)	NPV (A, 3)	NPV (B, 5)	NPV (A, )	NPV (B, )
1	31.18	49.53	1060.04	1020.60
2	27.50	43.42	476.75	460.61
3	23.96	37.64	282.35	273.95
4	20.56	32.16	185.17	180.62
5	17.28	26.98	126.88	124.62
6	14.12	22.06	88.04	87.29
7	11.08	17.40	60.30	60.63
8	8.15	12.98	39.51	40.63
9	5.32	8.78	23.35	25.08
10	2.59	4.79	10.42	12.64