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Q.2) Indo Plastics Ltd. is a manufacturer of high quality plastic products. Rasik, President is considering computerizing the company's ordering, inventory and billing procedures. He estimates that the annual savings from computerization include a reduction of 4 clerical employees with annual salaries of Rs. 50,000 each, Rs. 30,000 from reduced production delays caused by raw materials inventory problems, Rs. 25,000 from lost sales due to inventory stock outs and Rs. 18,000 associated with timely billing procedures. outlays will be capitalized (depreciated) on a straight line basis to a zero books salvage value which is also its market value at the end of five years. Operation of the new system requires two computer specialists with annual salaries of Rs. 80,000 per person. Also annual maintenance and operating (cash) expenses of Rs. 22,000 are estimated to be required. The company's tax rate is 40% and its required rate of retum (cost of capital) for this project is 12% Your are required to- evaluate the project using NPV method, (ii) Calculate the IRR of the project (iii) evaluate the project using PI method; Vivo V15Pro (iv) calculate the Project's payback period. A Trinlemes 20