What discount rate should I apply for present value calculations, with 2 significant decimal places, if inflation is running at 5% and I want a real return of 6%?

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Discount rate is the application of the interest rate--the multiplier converting future returns--to a project with a future value that presents the cost in terms of present value.

When applying the NPV rule, the discount rate should equal the required rate of return.

In this specific case, 5% inflation + 6% real (inflation adjusted) return means that the required rate of return for the project is 11% nominal. If the required rate of return was 6%...

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