firm is evaluating an investment in a new software system costing Rs. 2,00,000. The system will have a useful life of 5 years and no salvage value. It will generate annual net operating income after depreciation of Rs. 30,000. The firm's tax rate is 27%. The present value factors for 5 years are given below:

Present Value Factors:

Discounting Rate	Cumulative Factor
8%	3.99
10%	3.79
12%	3.60
14%	3.42
16%	3.25

Requirements:

1. Calculate the annual net cash inflow after tax.
2. Compute the present value of the cash inflows at each discount rate.
3. Determine the NPV at each discount rate.
4. Find the IRR of the system.
5. Evaluate if the software system should be purchased if the required rate of return is 10%.