Consider the following cash flows on two mutually exclusive projects:

Year	Project A		Project B
0	$	52,000	$	67,000
1		32,000		31,000
2		27,000		40,000
3		22,000		43,000

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 12 percent and the inflation rate is 3 percent.

Calculate the NPV for each project. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	NPV
Project A	$
Project B	$

Which project should you choose?

	Project A
	Project B