Brite Co. is considering the following two mutually exclusive projects. The cash flows for project A are expressed in real terms, while those of project B are expressed in nominal terms. The appropriate nominal discount rate is 8% and the inflation rate is 2%. A) Using the exact Fisher equation, calculate the real discount rate. (Enter percentages as decimals and round to 4 decimals).

B). Calculate the NPV for Project A and B (round to 2 decimals)

C) Should the firm: reject A and accept B? Reject both? Accept Both? or Accept A and reject B?

Year	Project A	Project B
0	-60,000	-70,000
1	20,000	15,000
2	20,000	15,000
3	20,000	20,000
4	10,000	25,000
5	10,000	25,000