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Problem 6-19 Capital Budgetling with Inflation Consider the following cash flows on two mutually exclusive projects: The cash flows of Project A are expressed in
Problem 6-19 Capital Budgetling 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 B are expressed in nominal terms. The appropriate nominal discount rate is 12 percent and the inflation rate is 4 percent. Calculate the NPV for each project. (Do not round Intermedlate calculations and round your answers to 2 declmal pleces, e.g., 32.16.)
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