CFAI Mock CorpFin-Nominal Discount rate

CFA Level II
#1

Hi the question asks about if you should adjust nominal discount rate to discount nominal cash flow, answer says you use nominal cashflow and dont need tool adjust for inflation, which i get

but then it says-inflation is already included in nominal discount rate, THAT i dont get, someone pls enlighten me

#2

Real rates don’t include inflation; nominal rates do.

#3

further proof i am going insane, thanks!

#4

You’re welcome.