Those of project are expressed in nominal terms

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Consider the following cash flows on two mutually exclusive projects: Year Project A Project B 0 –$ 56,000 –$ 71,000 1 36,000 35,000 2 31,000 44,000 3 26,000 47,000 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 3 percent. Calculate the NPV for each project. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV Project A $ Project B $ Which project should you choose? Project A Project B

Reference no: EM131322778

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Those of project are expressed in nominal terms : Consider the following cash flows on two mutually exclusive projects: Year Project A Project B 0 –$ 56,000 –$ 71,000 1 36,000 35,000 2 31,000 44,000 3 26,000 47,000 The cash flows of project A are expressed in real terms, whereas those of project B a..

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