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PQR Ltd. is evaluating a project with the following cash flows: Year Cash Flow (Rs.) 0 -2,00,000 1 45,000 2 55,000 3 65,000 4 75,000
PQR Ltd. is evaluating a project with the following cash flows:
Year | Cash Flow (Rs.) |
0 | -2,00,000 |
1 | 45,000 |
2 | 55,000 |
3 | 65,000 |
4 | 75,000 |
5 | 85,000 |
- Depreciation: 10% on original cost
- Tax rate: 30%
Required:
- Calculate Payback Period (PBP) and ARR.
- Compute NPV and NPV Index with a 9% discount rate.
- Calculate IRR.
- Analyze the profitability index.
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