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S Consider the following cash flows on two mutually exclusive projects: Year O 1 2 3 Project A -$ 54,000 34,000 29,000 24,000 Project A
S Consider the following cash flows on two mutually exclusive projects: Year O 1 2 3 Project A -$ 54,000 34,000 29,000 24,000 Project A Project B 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 10 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.) Project B -$ 69,000 33,000 42,000 45,000 Which project should you choose? O Project A Project B
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