DEF Enterprises plans to undertake a project with the following projections:

• Initial investment: Rs. 3,00,000
• Project lifespan: 4 years
• Annual profits after depreciation and before tax: Rs. 1,20,000, Rs. 1,00,000, Rs. 90,000, Rs. 80,000
• Depreciation rate: 20% on original cost
• Tax rate: 28%

Required:

• Calculate the ARR and PBP.
• Compute the project's NPV, assuming a discount rate of 9%.
• Determine the IRR for the project.
• Assess the impact of a change in the discount rate to 12%.
• Conduct a sensitivity analysis on the annual profit.