JKL Ltd. is planning an investment of Rs. 750 lakhs in a new technology platform. The expected earnings before depreciation and taxes are as follows over the next seven years:

Year	1	2	3	4	5	6	7
Earnings (Rs.in lakhs)	280	290	300	310	320	330	340

• The cost of capital is 10%.
• Depreciation is to be charged at 12% on a Written Down Value basis.
• No scrap value at the end of the project.
• Income tax rate is 20%.

Requirements:

• Compute the annual depreciation.
• Calculate the NPV of the project.
• Determine the IRR.
• Calculate the payback period.
• Advise on the viability of the project based on the NPV and IRR.