LMN Corporation has an opportunity to invest in a project with the following details:

• Initial Investment: INR 2,000,000
• Expected Life: 7 years
• Scrap Value: INR 100,000
• Cost of Capital: 11%

Yearly Cash Flows:

Year	Cash Flow
1	300,000
2	400,000
3	500,000
4	600,000
5	700,000
6	800,000
7	900,000

Requirements:

1. Calculate the payback period.
2. Compute the NPV.
3. Determine the IRR.
4. Calculate the ARR.
5. Should LMN Corporation proceed with the investment? Justify your answer.