The company Derabel, SA is considering the purchase of a new machine for its production process. This project involves an initial cost of €200,000 and it is estimated that the machine will have a useful life of 5 years. The maximum productive capacity of the machine is 200,000 units per year. However, the first year the activity is expected to be 70% of the maximum installed capacity, reaching 100% from the second year.

During the first year, the unit sale price will be €2.50, the unit variable cost of €1.50 and the annual fixed cost of €60,000, resulting in accumulated annual increases of 4% in the sale price of the product. , 3% in variable costs and 2% on fixed costs.-How does this factor intervene in the solution?

Furthermore, it is assumed that:

• The company uses a straight-line depreciation system and the residual value of the machine is €25,000. In addition, the sale value of the machine at the end of its physical life will be €30,000, which will be collected in cash.
• The nominal discount rate (kN) used by the company is 8% per year and constant for the planning period.
• The tax rate that taxes benefits is 25%. Taxes are paid in the period following their accrual.
• All production is sold in the reference period.
• All income and expenses are charged and paid in cash.

With the previous data, determine the Net Cash Flows after taxes of the project described above. Calculate the net absolute return.