Combine nominal discount and inflation rates — inflation_adjusted

Computes i_a = i + f + i*f.

Usage

inflation_adjusted_rate(discount_rate, inflation_rate)

Arguments

discount_rate: Real discount rate.
inflation_rate: Inflation rate.

Value

Inflation-adjusted discount rate.

References

Tziner, A., Meir, E. I., Dahan, M., & Birati, A. (1994). An investigation of the predictive validity and economic utility of the assessment center for the high- management level. Canadian Journal of Behavioural Science, 26, 228-245.

Holling, H. (1998). Utility analysis of personnel selection: An overview and empirical study based on objective performance measures. Methods of Psychological Research Online, 3(1), 5-24.

Examples

# Literature: Tziner et al. (1994); Holling (1998).
inflation_adjusted_rate(.08, .025)
#> [1] 0.107