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A telecommunications company plans to undertake a new project requiring an investment of Rs. 1000 lakhs. The projected earnings (before depreciation and taxes) over the

A telecommunications company plans to undertake a new project requiring an investment of Rs. 1000 lakhs. The projected earnings (before depreciation and taxes) over the next five years are Rs. 400 lakhs, 420 lakhs, 440 lakhs, 460 lakhs, and 480 lakhs. The depreciation rate is 12% on a Written Down Value basis, with a scrap value of 30% at the end of five years. The cost of raising capital is 10%, and the company has a tax rate of 29%. Calculate the NPV, IRR, payback period, profitability index, and the accounting rate of return.

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