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Problem 6 - 1 9 Capital Budgeting with Inflation Consider the following cash flows on two mutually exclusive projects: The cash flows of Project A
Problem Capital Budgeting with Inflation
Consider the following cash flows on two mutually exclusive projects:
The cash flows of Project A are expressed in real terms, whereas those of Project
are expressed in nominal terms. The appropriate nominal discount rate is percent
and the inflation rate is percent. Calculate the NPV for each project. Do not round
intermediate calculations and round your answers to decimal places, eg
Which project should you choose? Please solve correctly Asked times for this question so far and it has not been solved right Thank you
Project A
Project B
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