Consider the following cash flows on two mutually exclusive projects Year Project A Project B 70,000 85,000 50,000 49,000 45,000 58,000 40,000 61,000 The cash flows of Project A are expressed in real terms, whereas those of Project 8 are expressed in nominal terms. The appropriate nominal discount rate is 12 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 Which project should you choose? Project A Project B RererenceseBOOK i Resources Section: 6.1 Incremental Cash Flows The Key to Capital Budgeting Worksheet