Beta Ltd is planning an investment with the following financials:
Year12345
Rs.1,00,0001,20,00090,00080,00070,000
•Initial Investment: Rs. 4,00,000
•Project Life: 5 years, no residual value
•Depreciation: 20% per year
•Tax Rate: 30%
•Requirements:
1.Calculate Payback Period (PBP)
2.Compute Accounting Rate of Return (ARR)
3.Determine Net Present Value (NPV) at 9% discount rate
4.Find Internal Rate of Return (IRR)
5.Compute Profitability Index (PI)