Consider the following cash flows on two mutually exclusive projects:

Year	Project A		Project B
0	$	51,000	$	66,000
1		31,000		30,000
2		26,000		39,000
3		21,000		42,000

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 14 percent and the inflation rate is 5 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 B
	Project A