1. Regina is considering a project with an outflow of $20,000 immediately. Projected future real cash flows are $2,000 per year indefinitely into the future. a. If the firm has a nominal required rate of return of 15 percent and inflation is expected at 5 percent, should the project be undertaken? b. If the firm incorrectly uses the nominal rate to discount future real cash flows, will its decision be correct? Fully explain your answer. Discount Rate = (1+ nominal rate / 1+ inflation rate) 1 x 100