A limited company is considering investing a project requiring a capital outlay of ` 2,00,000. Forecast for annual income after depreciation but before tax is as follows: Depreciation may be taken as 20% on original cost and taxation at 50% of net income. You are required to evaluate the project according to each of the following methods:

(a) Pay-back method

(b) Rate of return on original investment method

(c) Rate of return on average investment method

(d) Discounted cash flow method taking cost of capital as 10% (e) Net present value index method

(f) Internal rate of return method

Year 1,00,000 1,00,000 80,000 80,000 40,000 2345