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Consider the following cash flows on two mutually exclusive projects: Cash flows of project A are expressed in real terms, while those of project B

image text in transcribed Consider the following cash flows on two mutually exclusive projects: Cash flows of project A are expressed in real terms, while those of project B are expressed in nominal terms. The appropriate nominal discount rate is 11.6 percent, and inflation is 2.2 percent. a. Calculate the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round the answers to 2 decimal places. Omit \$ sign in your response.) b. Which project should you choose? Project A Project B None

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