# Year Project A Project B 0     –$51,000 –$ 66,000   1     31,000     30,000    2     26,000     39,000   3      21,000     42,000        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 14 percent and the inflation rate is 5 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 A NPV: Project B NPV:

Question
 Year Project A Project B 0 –$51,000 –$ 66,000 1 31,000 30,000 2 26,000 39,000 3 21,000 42,000

 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 14 percent and the inflation rate is 5 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 A NPV:

Project B NPV: