GHI Industries is considering a capital expenditure of Rs. 850 lakhs in an advanced manufacturing unit. The projected earnings before depreciation and taxes for the next six years are:

Year	1	2	3	4	5	6
Earnings (Rs.in lakhs)	310	320	330	340	350	360

• The discount rate is 12%.
• Depreciation is to be charged at 18% on a Written Down Value basis.
• No residual value at the end of the project.
• No taxes applicable.

Requirements:

• Calculate the annual depreciation.
• Determine the NPV of the project.
• Find the IRR.
• Calculate the profitability index.
• Provide a recommendation on whether to proceed with the project based on the financial analysis.