Question: Consider the following cash flows on two mutually exclusive projects: YearProjectA Project B -$72,000 -$57,000 37,000 32,000 27,000 36,000 45,000 48,000 2 The cash flows

Consider the following cash flows on two mutually exclusive projects: YearProjectA Project B -$72,000 -$57,000 37,000 32,000 27,000 36,000 45,000 48,000 2 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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