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The investment data of prudent Company Ltd launching a ew productand with 1 2 % of cost of capital is as follows. Investment Rs .

The investment data of prudent Company Ltd launching a ew productand with 12% of cost of capital is as follows.
Investment Rs.700000
CFAT Year 1 Rs.500000
Year 2 Rs.400000
Year 3 Rs.200000
Year 4 Rs.100000
Year 5 Rs.100000
Assuming inflation rate of 5%, determine NPV of the project by using both the nominal rate of discount and the real rate of discount

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