CFAI Mock CorpFin-Nominal Discount rate

[h21]

Hi the question asks about if you should adjust nominal discount rate to discount nominal cash flow, answer says you use nominal cashflow and dont need tool adjust for inflation, which i get
but then it says-inflation is already included in nominal discount rate, THAT i dont get, someone pls enlighten me

 

[S2000magician]

Real rates don’t include inflation; nominal rates do.

 

[h21]

S2000magician wrote:
Real rates don’t include inflation; nominal rates do.

further proof i am going insane, thanks!

 

[S2000magician]

You’re welcome.