What is the difference between a real discount rate and a nominal discount rate When should a real discount rate be used in an NPV calculation and when should a nominal rate be used ...

The real discount rate is net of inflation whereas the nominal discount rate includes infl ...

What is the difference between a real discount rate and a nominal discount rate? When should a

Question:

What is the difference between a real and a nominal When should a real be used in an NPV calculation and when should a nominal rate be used?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...