Epsilon Enterprises is contemplating the purchase of a new piece of equipment that costs INR 300,000. The equipment is expected to produce the following cash flows:

Year	Cash Flows
Initial Investment	(300,000)
1	80,000
2	90,000
3	100,000
4	110,000

Requirements: a. Compute the payback period. b. Calculate the NPV of the investment if the discount rate is 10%. c. Should Epsilon Enterprises proceed with the purchase? Justify your answer using the NPV rule.