Leo Publishing is considering entering a new line of business. In analyzing the potential business, their financial staff has accumulated the following information: The new business will require a capital expenditure of Rs 50 lacs at t = 0. This expenditure will be used to purchase new equipment. This equipment will be depreciated according to the following depreciation schedule: Year Depreciation Rates 1 0.33 2 0.45 3 0.15 4 0.07 The equipment will have no salvage value after four years. If Leo Publishing goes ahead with the new business, inventories will rise by Rs. 5,00,000 at t = 0, and its accounts payable will rise by Rs. 2,00,000 at t = 0. This increase in net operating working capital will be recovered at t = 4. The new business is expected to have an economic life of four years. The business is expected to generate sales of Rs. 30 lacs at t = 1, Rs 40 lacs at t = 2, Rs. 50 lacs at t = 3, and Rs. 20 lacs at t = 4. Each year, operating costs excluding depreciation are expected to be 75 percent of sales. The companys tax rate is 40 percent. The companys weighted average cost of capital is 10 percent. The company is very profitable, so any accounting losses on this project can be used to reduce the companys overall tax burden.

What is the expected net present value (NPV) of new business ?