An energy company is evaluating a project to build a new power plant, requiring an investment of Rs. 1,200 lakhs. The project is expected to generate the following earnings (before depreciation and taxes) over the next ten years:

Year	Earnings (Rs. in lakhs)
1	300
2	310
3	320
4	330
5	340
6	350
7	360
8	370
9	380
10	390

The cost of capital is 8%, and the plant will be depreciated on a straight-line basis over its useful life. The scrap value at the end of ten years is estimated to be Rs. 100 lakhs. Assume no income tax.

Requirements:

1. Calculate the net present value (NPV) of the project.
2. Determine the internal rate of return (IRR) of the project.
3. Compute the payback period.
4. Evaluate the profitability index of the project.
5. Advise whether the company should proceed with the project based on the NPV and IRR.