DEF Ltd. is planning a new project with a life of 8 years. The project involves an initial investment of Rs. 4 crores. The project will generate additional cash flows of Rs. 70,00,000 per year.

• Variable costs are estimated to be 60% of sales, and fixed costs will be Rs. 10,00,000 annually.
• The company's tax rate is 32%, and it considers 10% to be an appropriate discount rate.

Required:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine the Internal Rate of Return (IRR) for the project.
3. Compute the payback period for the project.
4. Assess the profitability index (PI) for the project.
5. Recommend whether the company should invest in the project based on the calculated metrics.