Question: Consider the following two mutually exclusive projects.The cash flows for project A are expressed in real terms, while those of project B are expressed in

Consider the following two mutually exclusive projects.The cash flows for project A are expressed in real terms, while those of project B are expressed in nominal terms.The appropriate nominal discount rate is 8% and the inflation rate is 2%.

Using the exact Fisher equation, calculate the real discount rate.(Enter percentages as decimals and round to 4 decimals).

Year Project A Project B

0 -55,000 -68,000

1 22,000 34,000

2 43,000 37,000

3 15,000 25,000

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