Kappa Health Services Ltd.

Scenario: Kappa Health Services Ltd. is evaluating an investment in a new diagnostic machine costing Rs.450,000. The machine has a life expectancy of 6 years with no salvage value. The tax rate is 34%. The company uses straight-line depreciation for both accounting and tax purposes. The estimated cash flows before depreciation and tax (CFBT) from the diagnostic machine are as follows:

Year	CFBT (Rs)
1	90,000
2	95,000
3	100,000
4	105,000
5	110,000
6	115,000

Compute the following:

1. Payback period
2. Internal Rate of Return (IRR)
3. NPV at 12% discount rate
4. Modified Internal Rate of Return (MIRR) at 12% discount rate