Consider the following cash flows on two mutually exclusive projects:

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YearProject AProject B$0$$ $51,000$$ $66,000131,00030,000226,00039,000321,00042,000$

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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 $14$ 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$.,32\mathrm{.}16.)$

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Which project should you choose?$$

multiple choice

Project A

Project B Correct