Guangdong Machinery is evaluating a new project to produce encapsulators. The initial investment in plant and equipment is RMB $500,000.$ Sales of encapsulators in year $1$ are forecasted at RMB $200,000$ and costs at RMB $100,000.$ Both are expected to increase by $10\%$ a year in line with inflation. Profits are taxed at $25\%.$ Working capital in each year consists of inventories of raw materials and is forecasted at $20\%$ of sales in the following year. The project will last $5$ years and the equipment at the end of this period will have no further value. for tax purposes, the equipment can be depreciated straight$-$line over these $5$ years. if the nominal discount rate is $15\%,$ show that the Net present value of the project is the same whether calculated using real cash flows or nominal flows.