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Business, 24.02.2020 18:56 laura1649

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.

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Consider the following cash flows on two mutually exclusive projects: YearProject AProject B0 –$61,0...
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