Problem $6-19$ Capital Budgeting with Inflation

Consider the following cash flows on two mutually exclusive projects:

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 $10$ percent

and the inflation rate is $4$ percent. Calculate the NPV for each project. $($Do not round

intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Which project should you choose?

Project A

Project B