So even if inflation has been accounted for in cash flows or the investable assets, when calculating nominal return, we still add inflation to the real return (o nominal = real + inflation)?

Suppose, for simplicity, that the required cash flow increases with inflation, so that the following year (the year after next), it will be $206,000.

Next year we need our return to cover $200,000, plus we need our asset base to grow by 3%. Thus, our return is $200,000 / $2,500,000 + 3% = 8% + 3% = 11%. Of that, $200,000 is spent, and $75,000 is added to our asset base, bringing it to $2,575,000.

The following year, the return is $206,000 / $2,575,000 + 3% = 8% + 3% = 11%. Note how the extra 3% return next year increased the asset base so that the return to cover the cash flow was still 8%.