Question: Consider the following cash flows on two mutually exclusive projects: YearProject AProject B0$ 63,000$ 69,000128,00032,000226,00029,000323,00028,000 The cash flows of Project A are expressed in real
Consider the following cash flows on two mutually exclusive projects: YearProject AProject B0$ 63,000$ 69,000128,00032,000226,00029,000323,00028,000 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 3 percent. Calculate the NPV for each project. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16. Which project should you choose? multiple choice Project A Project B
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