The investment data of Prudent Company Ltd launching a new product and with 12% of cost of capital is as follows:
Investment: Rs. 700,000
CFAT Year 1: Rs. 500,000
Year 2: Rs. 400,000
Year 3: Rs. 200,000
Year 4: Rs. 100,000
Year 5: Rs. 100,000
Assuming an inflation rate of 5%, determine the NPV of the project by using both the nominal rate of discount and the real rate of discount.