A machine costing Rs 1,50,000 has a life of 4 years. Incremental pre-tax net cash inflow is Rs 80,000 per annum. Tax rate is 30%. Inflation rate is expected to average 5% and the cost of capital in...

A machine costing Rs 1,50,000 has a life of 4 years. Incremental pre-tax net cash inflow is Rs 80,000 per annum. Tax rate is 30%. Inflation rate is expected to average 5% and the cost of capital in real terms is 8%. Compute NPV in real and nominal terms.