Capital Budgeting with Inflation. For questions 7 and 8 use the following information. Consider the...
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Capital Budgeting with Inflation. For questions 7 and 8 use the following information. Consider the following cash flows on two mutually exclusive projects:
| Year | Project A | Project B |
| 0 | -$60,000 | -$75,000 |
| 1 | $38,000 | $40,000 |
| 2 | $36,000 | $42,000 |
| 3 | $29,000 | $46,000 |
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.
What is the NPV for Project B?
Round to the nearest cent and format as "XX,XXX.XX"
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