Consider the following cash fows on two mutually exclusive projects Year Project A ProjectB 70,00085,000 50,000 49.000 45,000 58.000 40,000 61,000 The cash flows of Project A are expressed in real terms, whereas those of Project B are expressed in nominal tems. The appropriate nominal discount rate is 12 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 S 48405.80 Which project should you choose? Project B Project A References eBook & Resources Worksheet Section: 6.1 Incremental Cash Flows The Key to Capital Budgeting