Consider the following cash flows on two mutually exclusive projects:

Year Project A Project B

0 $64,000 $79,000

1 44,000 43,000

2 39,000 52,000

3 34,000 55,000

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 11 percent and the inflation rate is 4 percent. Calculate the NPV for each project.