Consider the following cash flows on three mutually exclusive projects:

The cash flows of Project A are expressed in real terms, whereas those of Project B and Project C are expressed in nominal terms. The appropriate nominal discount rate is 15 percent and the expected inflation rate is 4 percent. Of the three mutually exclusive projects, you should choose Project ____ .

ject A $50,000 30,000 25,000 20,000 Project B $65.000 29,000 38,000 41,000 Project C $55,000 28,000 27,000 33,000 ear