A firm is planning to invest ₹1,200,000 in a new project. The project is expected to generate the following earnings before depreciation and taxes over 5 years:

• Year 1: ₹240,000
• Year 2: ₹250,000
• Year 3: ₹260,000
• Year 4: ₹270,000
• Year 5: ₹280,000

Depreciation is on a straight-line basis with no salvage value. The tax rate is 26%, and the required rate of return is 14%.

Requirements:

1. Calculate the annual depreciation expense.
2. Determine the Net Present Value (NPV).
3. Find the Internal Rate of Return (IRR).
4. Calculate the Payback Period.
5. Assess the project’s acceptability using NPV and IRR criteria.