If an investment costing $2,000 is expected to generate real cash flows of $900 p.a. for three years, prices are expected to increase at a rate of 5% p.a., and the nominal cost of capital is 15%, what is the net present value of the investment? Answer to the nearest dollar.

I understand how we can get NPV, but im confused when there is nominal cost of capital. How can I solve this? kindly explain.