2. Consider the following cash flows on two mutually exclusive projects: The cash flows of project A are expressed in real terms while those of Popject B are expressed in nominal terms. The appropriate nominal discount rate is 11 percent and the inflation rate is 4 percent. Which project should you choose?
												Project A (real cash flow)	Project B (nominal cash flow)
	Year
	0	(67,000)	(74,000)
	1	34,000	34,000
	2	37,000	45,000
	3	23,000	29,000
	Discount rate
	NPV