Question
The cash flow of project A are expressed in real terms, whereas those of project B are expressed in nominal terms. The appropriate nominal discount
The cash flow of project A are expressed in real terms, whereas those of project B are expressed in nominal terms. The appropriate nominal discount rate is 13 percent and the inflation rate is 4 percent. Which project should you choose? USING EXCEL FORMULAS!
Consider the following cash flows on two mutually exclusive projects:
| Year | Project A | Project B |
| 0 | -$50,000 | -$65,000 |
| 1 | $30,000 | $29,000 |
| 2 | $25,000 | $38,000 |
| 3 | $20,000 | $41,000 |
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
12th Edition
0030258723, 9780030258725
