A lot of these calculations solve this by using a lower expected growth rate, to offset the expected inflation. It lets you have the more simple conversations in today’s currency values, which are easier to reason about.
That’s not the case in this particular example, and you’ve correctly identified a deficiency. I raise the point for the benefit of any curious readers who look into other conversations on the topic.
A lot of these calculations solve this by using a lower expected growth rate, to offset the expected inflation. It lets you have the more simple conversations in today’s currency values, which are easier to reason about.
That’s not the case in this particular example, and you’ve correctly identified a deficiency. I raise the point for the benefit of any curious readers who look into other conversations on the topic.