Explain how you might analyze a capital budgeting decision where the cash flow data are nominal (including

Question:

Explain how you might analyze a decision where the cash flow data are nominal (including expected inflation of, say, 3 percent per year) but the quoted of 10 percent per year is real (excluding anticipated inflation).

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...