A company is considering the purchase furniture at costing Rs 120,000 that would save

Rs 30,000 each year for five years. The equipment could be sold at the end of its useful life for Rs 15,000. The

company requires every project to yield a return of 10% or more otherwise they will be rejected. Should this equipment be purchased?

a. Calculate the first NPV at 9%

b. Calculate the first NPV at 12%,

c. Use the two NPV values calculated in a and b part to estimate the IRR percentage

d. With expected yield of 10% shall the project be undertaken. Comment