How did the nominal cash flow got calculated? Upon using the formula, Nominal Discount Rate

= (1 + Real Discount Rate)(1 + Inflation Rate) - 1, i kept getting the wrong value

(1 + 9.2%)(1+5%) -1 = 0.1444 instead of 0.916

M2 SWF is considering a project that is expected to generate $10 million at the end of each year for 5 years. The initial outlay required is $25 million. A nominal discount rate of 9.2% is appropriate for the risk level. Inflation is 5%. You are the company's financial analyst. The company's CFO has asked you to calculate NPV using a schedule of future nominal cash flows. Solution Nominal cash flows are calculated for each year as follows: Year1 = $10 million x (1+5%)1 = $10.5 million Year 2 = $10 million x (1+5%)2 = $11.3 million Year 3 = $10 million x (1+5%)3 = $11.58 million Year 4 = $10 million x (1+5%)4 = $12.16 million Year 5 = $10 million x (1+5%)5 = $12.76 million These nominal cash flows are to be discounted using nominal discount rate, which is 9.2% All amounts are USD in million. Year 1 2 3 4 5 Total Nominal cash flows 10.50 11.03 11.58 12.16 12.76 PV discount rate@9.2% nominal 0.916 0.839 0.768 0.703 0.644 PV of cash flows 9.62 9.25 8.89 8.55 8.22 44.52