An investment opportunity requires Rs. 1,200 lakhs for new equipment. The expected earnings before depreciation and taxes over six years are:

Year	Earnings (Rs. in lakhs)
1	280
2	300
3	320
4	340
5	360
6	380

The cost of capital is 14%. The equipment will be depreciated at 20% on a straight-line basis. The scrap value at the end of the period is Rs. 150 lakhs.

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. Recommend whether to proceed with the investment.