If you are discounting a project's cash flows using the nominal cost of capital, then that means that you have taken _______ into account:

Question

Quizplus · Accepted Answer

The nominal cost of capital includes both the real rate of return and the expected rate of inflation, reflecting the total return required by investors to compensate for both the time value of money and the loss of purchasing power due to inflation.

If You Are Discounting a Project's Cash Flows Using the Nominal