Question: Consider the following cash flows on two mutually exclusive projects: YearProject AProject B 0 $ 6 7 , 0 0 0 $ 8 2 ,
Consider the following cash flows on two mutually exclusive projects:
YearProject AProject B$ $
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 percent and the inflation rate is percent.Calculate the NPV for each project.
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