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HIJ Ltd. is considering the purchase of one of two new pieces of equipment. The company's cost of capital is 13% and the tax rate

HIJ Ltd. is considering the purchase of one of two new pieces of equipment. The company's cost of capital is 13% and the tax rate is 31%. Below are the details:

Particulars	Equipment A	Equipment B
Cost of equipment	15,00,000	18,00,000
Expected life	5 years	5 years
Annual Income (before Tax & Depreciation)	4,00,000	5,50,000

Depreciation is charged on a straight-line basis. You are required to calculate: a. Discounted payback period b. NPV c. Profitability index

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