PQR Company is evaluating a new investment project. The details are:

• Initial investment: Rs.4,00,000
• Depreciation: 20% per annum on the original cost
• Tax rate: 32%

Projected annual cash inflows are:

• Year 1: Rs. 1,00,000
• Year 2: Rs. 1,20,000
• Year 3: Rs. 1,40,000
• Year 4: Rs. 1,00,000
• Year 5: Rs. 80,000

Required:

1. Calculate Payback Period (PBP).
2. Determine the Accounting Rate of Return (ARR).
3. Compute the Net Present Value (NPV) and Profitability Index (PI) with a discount rate of 12%.
4. Calculate the Internal Rate of Return (IRR).