A new venture requires Rs. 2,500 lakhs investment in assets. The projected annual cash flows are as follows:

Year	Cash Flow (Rs. in lakhs)
1	500
2	520
3	540
4	560
5	580

The discount rate is 18%. The assets will depreciate at 12% on a written-down value basis, and the residual value is Rs. 300 lakhs at the end of five years.

Required:

1. Calculate the net present value (NPV).
2. Determine the internal rate of return (IRR).
3. Compute the payback period.
4. Calculate the annual depreciation expenses.
5. Evaluate the overall financial feasibility of the project.

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Unlicensed copy of the Froala Editor. Use it legally by purchasing a liXYZ Corp. is considering a new investment project that requires an initial outlay of $3 million. The project is expected to generate the following cash flows over the next five years:

• Year 1: $500,000
• Year 2: $1,000,000
• Year 3: $1,500,000
• Year 4: $2,000,000
• Year 5: $2,500,000

Additional details:

• The company uses straight-line depreciation for the assets.
• The corporate tax rate is 25%.
• The cost of capital is 10%.

Requirements:

1. Calculate the annual depreciation expense.
2. Compute the after-tax cash flows for each year.
3. Determine the net present value (NPV) of the project.
4. Calculate the internal rate of return (IRR) of the project.
5. Provide a recommendation on whether the project should be undertaken based on the NPV and IRR.