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(a) How demand of a product is affected by the variation in price, income and government policy? How does the market react with the increase

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(a) How demand of a product is affected by the variation in price, income and government policy? How does the market react with the increase in demand of sanitizers in the pandemic period? (b) XYZ Limited is evaluating a project with the following cash flows (Rs. In million): Year Cash Flow 0 -200 1 30 2 50 3 70 4 80 5 100 Assume that the cost of capital as 10%. Find NPV and discounted payback period. [3 + 4 = 7]

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