2012 CFA AM Q1A (Required return - inflation adjustment)

Calculate the required annual return

Should we do inflation adjustment?

It’s similiar to Schweser B1. example 3 (p236)

Schweser using I/Y+ inflation rate

I wrote an article that includes a reference to this problem: http://financialexamhelp123.com/inflation-in-required-rate-of-return-to-tax-or-not-to-tax/

Thanks S2000, but the question is regarding to add inflation for IRR or not…