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55 the 4th year is Rs. 50,000. Calculate the ne (Answer : P.V. of Cash inflows Rs. 2,36,360; P.V. of Inflows - Rs. 2,94,480; NPV - Rs. 58,120 [11.28 29. 50,000 . 5 - - A company is considering an investment proposal to install new milling machine. The project wi cost Rs. 50,000. The machine has a life expectancy of 5 years and no salvage value. The company tax rate is 55%. The firm uses straight line method of depreciation. The estimated profit befor depreciation and tax from the proposed investment proposal are as follows : Year 1 2 3 4 5 Profit (Rs.) 10,000 11,000 14,000 15,000 25,000 - (i) ; (ii) ; (iii) 10 (iv) 10 Compute the following: (a) Pay-back period; (b) Average rate of return; (c) Net present value at 10% discount ra (d) Profitability index at 10% discount rate