Nominal cash flow

Nominal appraisal forecasts each receipt and payment at the prices expected when it occurs. Apply the specific inflation rate appropriate to each item, taking account of whether a quoted value is at today's prices or already at a future date's prices. Discount these cash flows using a nominal rate for the same currency and risk. Tax and working-capital amounts often depend on nominal values. Do not inflate the same amount twice or assume general inflation applies equally to every component. A consistent real-terms model should give the same NPV.