A company is planning to purchase a delivery truck for Rs. 2,50,000 with an expected life of 8 years and no salvage value. The truck will generate annual net operating income after depreciation of Rs. 35,000. The company's tax rate is 25%. The present value factors for 8 years are as follows:

Present Value Factors:

• 8%: 6.21
• 10%: 5.65
• 12%: 5.23
• 14%: 4.79
• 16%: 4.49

Requirements:

1. Determine the annual net cash inflow after tax.
2. Calculate the present value of the cash inflows at each discount rate.
3. Determine the NPV at each discount rate.
4. Calculate the IRR of the proposal.
5. Decide if the truck should be purchased if the company’s required rate of return is 10%.