Question: Consider 2 projects, A and B. Which would you choose? Assume the following: Project A costs $15,000 and will generate a one-time $25,000 (nominal) cash

Consider 2 projects, A and B. Which would you choose? Assume the following: Project A costs $15,000 and will generate a one-time $25,000 (nominal) cash flow in 5 years. Project B costs $12,000 and will generate a one-time $18,000 (real) cash flow in 4 years. Assume a nominal discount rate of 5% and an inflation rate of 2%.

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