2. A Company is considering replacing one of its bottling machines with a new, more efficient one. The old machine presently has a book value of Rs 75,000 and could be sold for Rs 60,000. The old machine if being depreciated using the straight line method down to a zero book value over the next 5 years generating depreciation of Rs 15,000 per year. The replacement machine would cost Rs 2,50,000 and have an expected life of 5 years after which it could be sold for Rs 20,000. Because of reduction in defects and material savings, the new machine would produce cash benefits of Rs 1,00,000 per year before depreciation and taxes. Assume straight line depreciation, a 40 percent marginal tax rate, and a required rate of return of 16 percent. Find: a. Payback period b. The net present value c. The profitability Index d. Internal rate of return