Question: Consider the following cash flows on two mutually exclusive projects: Year Project A Project B 0 $ 6 8 , 0 0 0 $ 8

Consider the following cash flows on two mutually exclusive projects:
Year Project A Project B
0$ 68,000$ 83,000
148,00047,000
243,00056,000
338,00059,000
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 11 percent and the inflation rate is 5 percent. Calculate the NPV for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)

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