PQR Ltd. is planning to invest in a new technology that will improve production efficiency. The project life is 7 years, with an initial investment of Rs. 3.5 crores. The technology upgrade will require additional capital expenditure of Rs. 10,00,000 at the end of the third year.

The projected annual revenue increase due to the technology upgrade is as follows:

• Year 1: Rs. 50,00,000
• Year 2: Rs. 75,00,000
• Year 3: Rs. 1,00,00,000
• Year 4: Rs. 1,25,00,000
• Year 5: Rs. 1,50,00,000
• Year 6: Rs. 1,75,00,000
• Year 7: Rs. 2,00,00,000
• Variable costs are 55% of the revenue, and fixed costs are Rs. 20,00,000 per year.
• The company’s tax rate is 30%, and it considers 11% to be an appropriate discount rate.

Required:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine the Internal Rate of Return (IRR) for the project.
3. Compute the discounted payback period for the project.
4. Assess the profitability index (PI) for the project.
5. Advise the management on whether to implement the technology upgrade based on the calculated metrics.