Question: Consider the following cash flows on two mutually exclusive projects: The cash flows of Project A are expressed in real terms, whereas those of Project

Consider the following cash flows on two mutually exclusive projects: The

Consider the following cash flows on two mutually exclusive projects: The cash flows of Project A are expressed in real terms, whereas 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 final answers to 2 decimal places Which project should you choose? Project A Project B

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