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Consider the following cash flows on two mutually exclusive projects YearProject A Project B 67,00082,000 47,000 46,000 42,000 55,000 37,000 58,000 The cash flows of
Consider the following cash flows on two mutually exclusive projects YearProject A Project B 67,00082,000 47,000 46,000 42,000 55,000 37,000 58,000 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 10 percent and the inflation rate is 2 percent. Calculate the NPV for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project A Project B
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