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

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

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When discounting cash flows using the nominal cost of capital, both the real rate of return and the expected rate of inflation are considered, as the nominal rate includes both these components.

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