Question: Consider the following cash flows on two mutually exclusive projects: Year Project A Project B 0 67000 82000 1 47000 46000 2 42000 55000 3

Consider the following cash flows on two mutually exclusive projects:

Year	Project A	Project B
0	67000	82000
1	47000	46000
2	42000	55000
3	37000	58000

The cash flows of Project A are expressed in real terms while those of Project B are expressed in nominal terms. The appropriate nominal discount rate is 10 percent and the inflation rate is 2 percent. Calculate the NPV for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	NPV
Project A	$
Project B	$

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