Kappa Corp has an investment opportunity that costs Rs. 3,20,000 initially. The project has a 4-year life with no residual value. The expected profits after depreciation but before tax are Rs. 90,000, Rs. 1,00,000, Rs. 1,20,000, and Rs. 80,000 for each year. Depreciation is charged at 25% per year. The corporate tax rate is 25%. Calculate:
1.Payback Period (PBP) and ARR.
2.NPV and NPV Index if the cost of capital is 9%.
3.IRR.
4.DPBP.
5.PI.