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navik [9.2K]
3 years ago
7

Consider the following cash flows on two mutually exclusive projects: YearProject AProject B0 –$61,000 –$76,000 1 41,000 40,000

2 36,000 49,000 3 31,000 52,000 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.

Business
1 answer:
solmaris [256]3 years ago
8 0

Answer:

Following is given the solution for the question.

I hope it will help you a lot!

Explanation:

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