Company: Xi Retail Ltd.

Scenario: Xi Retail Ltd. is considering an investment in a new inventory management system costing Rs.180,000. The system has a life expectancy of 5 years with no salvage value. The tax rate is 30%. The company uses straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the system are as follows:

Year	CFBT (Rs)
1	35,000
2	40,000
3	45,000
4	50,000
5	55,000

Compute the following:

1. Payback period
2. Internal Rate of Return (IRR)
3. NPV at 8% discount rate

Profitability Index at 8% discount rate