Company: Delta Electronics Inc.

Scenario: Delta Electronics Inc. is evaluating an investment in new testing equipment costing Rs.200,000. The equipment has a life expectancy of 7 years with no salvage value. The tax rate is 25%. The company uses straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the equipment are as follows:

Year	CFBT (Rs)
1	40,000
2	45,000
3	50,000
4	55,000
5	60,000
6	65,000
7	70,000

Compute the following:

1. Payback period
2. Average rate of return
3. NPV at 9% discount rate
4. Profitability Index at 9% discount rate