. A company is considering an investment proposal to install new milling controls at a cost of Rs.50,000/- The facility has a life expectancy of 5 years and no salvage value. The tax rate is 35%. Assume the firm uses straight line depreciation and the same is used for tax purpose. The estimated cash flows and before depreciation and taxes are as follows. Calculate Pay Back Period, NPV at 10% discount rate, IRR.

YearCFBT

1Rs.10,000/-

2Rs. 10,692 /-

3Rs. 12,769/-

4Rs. 13,462/-

5Rs. 20385/-