Lumbini Transportation (Pvt.) Ltd. is considering to run micro bus service from Butwal to Pokhara. A micro bus costs Rs 2,000,000 and it will ply daily for 5 years to come. Annual net cash inflows for five years will be as follows:

Year	1	2	3	4	5
Cash Flows (Rs)	800,000	700,000	650,000	600,000	800,000

1.The required rate of return of the project is 10 percent. What is the NPV of the project?

2.Based on your calculation in (c), should Lumbini Transportation (Pvt.) Ltd. not to run micro bus service?

3.What is the IRR of the project? Should Lumbini Transportation (Pvt.) Ltd. run micro bus service from Butwal to Pokhara?

4.What is the discounted payback period of the project? Assume 10 percent required rate of return.