A growth company has Rs 4 crore to invest in any or all of the following projects:

(in Rs ’000)

Type of Years Project cash flow 0 1 2 3 i. Investment (10,000)

Revenue 21,000 Operating 11,000 expenses ii. Investment (10,000)

Revenue 15,000 17,000 Operating 5,833 7,833 expenses iii. Investment (10,000)

Revenue 10,000 11,000 30,000 Operating 5,555 4,889 15,555 expenses iv. Investment (10,000)

Revenue 30,000 10,000 5,000 Operating 15,555 5,555 2,222 expenses Assume that all expenses are on cash basis.

Tax rate = 35 percent.

Depreciation will be on a straight-line basis.

Ignore salvage value.

Rank projects on the basis of Payback, NPV, IRR, and ROI.

The cost of capital for the company is 15 percent