A company proposes to purchase new office equipment for Rs. 1,80,000. The equipment will last for 4 years and has no salvage value. It is expected to generate annual net operating income after depreciation of Rs. 25,000. The company's tax rate is 22%. The present value factors for 4 years are as follows:

Present Value Factors:

• 8%: 3.31
• 10%: 3.17
• 12%: 3.04
• 14%: 2.91
• 16%: 2.79

Requirements:

1. Calculate the annual net cash inflow after tax.
2. Compute the present value of the cash inflows at each discount rate.
3. Calculate the NPV at each discount rate.
4. Find the IRR of the purchase.
5. Decide if the office equipment should be bought if the required rate of return is 12%.