Basril Co - not a past exam question

Hi John, In this question they are asking to calculate the NPV of 3 different projects and then using divisible/non divisible approaches see which projects should be accepted. In the scenario for both projects 1 & 2 the commentary states that the costs are in money terms - this suggests to me that they are already inflated. Exact wording - Project 1 - Savings in labour costs from these assessments in money terms are expected to be as follows... Projects 2 - An investment of $450k in individual workstations for staff that is expected to reduce admin costs by $140.8k per annum in money terms for the next 5 years I did not inflate these costs as it said they were in money terms but the answer in the back of the book has? I thought that money terms is the same as nominal terms and includes inflation but current price terms needs inflating! Thanks for the help Graham