You are considering two mutually exclusive projects. Project A cash flows are expressed in nominal dollars. The initial investment is $200,000 with cash flows in years 1, 2 and 3 of $80,000, $90,000 and $100,000 respectively. Project B cash flows are expressed in real dollars. The initial investment is $250,000 and the cash inflows are $60,000 in Year 1, $100,000 in year 2 and $140,000 in year 3. The appropriate nominal discount rate is 12% and the inflation rate is 3.7%. Which project would you select?

steps please.