Hercules Corp considers investing in a project that requires an initial investment at t=0 of 70,000. The project delivers real cash flows before tax of 62,000 and 68,000 at the end of year 1 and 2 respectively. The nominal discount rate equals 12.2%. The corporate tax rate equals 20%. For the next two years a constant inflation rate is expected of 2% per year. The investment of 70,000 is depreciated linearly (on a straight-line basis) to zero.

Calculate the cash flow after tax in nominal terms at t=1