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Consider the following cash flows on two mutually exclusive projects: points Year Project A Project B 0 $59.000 $74,000 1 39,000 38,000 2 34.000 47,000
Consider the following cash flows on two mutually exclusive projects: points Year Project A Project B 0 $59.000 $74,000 1 39,000 38,000 2 34.000 47,000 3 29,000 50,000 eBook References 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 14 percent and the inflation rate is 4 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 U 50,000 The cash flows of Project A are expressed in real terms, whereas those of Project Bare expressed in nominal terms. The appropriate nominal discount rate is 14 percent and the inflation rate is 4 percent. Ook Calculate the NPV for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) rences NPV Project A Project B Which project should you choose? Project B Project A
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