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rou are considering two investments, Project A and Project B. The following are the cash flows of each for today (Year 0 ) and the

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rou are considering two investments, Project A and Project B. The following are the cash flows of each for today (Year 0 ) and the following 3 years: Cash flows of project A are expressed in real terms, while those of project B are expressed in nominal terms. The appropriate nominal discount rate is 9 percent, and inflation is 2.8 percent. a. Calculate the NPV for each project? b. Which project should you choose

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