• LMN Inc. is considering selecting a new equipment out of two mutually exclusive options. The company's cost of capital is 11% and the tax rate is 28%. Other information relating to both options is as follows:

Particulars	Equipment 1	Equipment 2
Cost of equipment	900,000	1,200,000
Expected life	5 years	5 years
Annual Revenue (before Tax & depreciation)	250,000	320,000

• Depreciation is charged on a straight-line basis. You are required to calculate: a. NPV b. Internal Rate of Return (IRR) c. Discounted payback d. Profitability index