Abacus International is attempting to evaluate the feasibility of investing Tk. 95,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table. The firm has a 12% cost of capital. Year (t) Cash Inflows (CF t ) 1 Tk. 20,000 2 25,000 3 30,000 4 35,000 5 40,000

i) For the proposed investment, Calculate the- Payback Period (PBP) Discounted Pay Back Period (DPBP) Net Present Value (NPV) Profitability Index (PI) ii) Evaluate the acceptability of the proposed investment using the above calculation in req. (a).