I need help understanding what the question in B is asking. This is the table that I came up with, but I don't know if the table is diagramming "real cash flow".

	0	1	2	3	4	5	6	7	8
Nominal	$73,069.02	$75,991.78	$79,031.45	$82,192.71	$85,480.42	$8,899.64	$92,455.62	$96,153.85	$100,000
		73069.02*1.04	73069.02*(1.04)^2	73069.02*(1.04)^3	73069.02*(1.04)^4	73069.02*(1.04)^5	73069.02*(1.04)^6	73069.02*(1.04)^7

Maybe the ordering of the questions is throwing me off??? I found the answer to c (below) and I think I may be able to make a similar table based off of the answer in c....

c) Calculate the present value of Cindys inheritance using real cash flows

= 1 + real rate = (1 + .04) / (1 + .01)

= 1 + real rate = (1.04) / (1.01)

= 1 + real rate = 1.0297

real rate = .0297 or 2.97%

Present value in real cash flow = future value / (1 + real rate)^time

PV = 100,000 / (1.0297)⁸ = $79,125.10

	0	1	2	3	4	5	6	7	8
Real	$79,125.10								$100,000

Am I on the right track?

Cindy Arella's godmother just left her an inheritance of $100,000: Cindy will receive a payment of $100,000 when she turns 21, which will be in 8 years. Here is a diagram: 1 2 3 4 5 6 7 8 Nominal Cash Flow $100,000 The nominal interest rate is 4% per year, and the inflation rate is expected to be 1% per year. a. Calculate the present value of Cindy's inheritance using nominal cash flows. b. Draw a diagram of the real cash flow corresponding to Cindy's inheritance. c. Calculate the present value of Cindy's inheritance using real cash flows