SA Rail is evaluating a new project to produce generators. The initial investment in plant and equipment is R600,000. Sales of generators in Year 1 are forecasted at R250,000 and costs at R150,000. Both are expected to increase by 5% a year in line with inflation. Profits are taxed at 21%. Working capital in each year consists of inventories of raw materials and is forecasted at 15% of sales in the following year. The project will last five 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 five years. If the nominal discount rate is 8%, calculate the net present value using the real cash flows by completing the table in the next