Question: Consider the following cash flows on two mutually exclusive projects: The appropriate nominal discount rate is 11 percent and the inflation rate is 4 percent

Consider the following cash flows on two mutually exclusive projects:

The appropriate nominal discount rate is 11 percent and the inflation rate is 4 percent

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

Calculate the NPV for each project A and B

Year Project A Project B 0 52,000 53,000 S $ 1 22,000 24,000 2 20,500 23,000

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