Project ABC and XYZ are two mutually exclusive projects. The cash flows for ABC AND XYZ are expressed in nominal terms. The cash flows for ABC are: Year 0: -20000 Year 1: 18000 Year 2: 14000 Year 3: 11000. The cash flows for XYZ are: Year 0: -30000 Year 1: 9000 Year 3: 19000 Year 3: 20000. The appropriate Nominal Discount rate is 15 percent. Which project would you choose based on NPV?

Select one:

A.

NPV is same for both ABC and XYZ

B.

NPV is negative for both ABC and XYZ

C.

NPV is 0 for both ABC and XYZ

D.

Project ABC

E.

Project XYZ