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Iota Inc is investing Rs. 2,80,000 in a project. The project will last for 6 years with the following projected profits after depreciation and before
Iota Inc is investing Rs. 2,80,000 in a project. The project will last for 6 years with the following projected profits after depreciation and before tax:
•Year 1: Rs. 60,000
•Year 2: Rs. 75,000
•Year 3: Rs. 65,000
•Year 4: Rs. 70,000
•Year 5: Rs. 55,000
•Year 6: Rs. 50,000
Depreciation is charged at 20% on the original cost, and the tax rate is 30%. Calculate:
1.PBP
2.ARR
3.NPV at 10% discount rate
4.IRR
5.PI
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