PQR Ltd. is planning to undertake a project with the following financial data:

• Initial investment: Rs. 4,50,000
• Project duration: 5 years
• No salvage value
• Annual profits after depreciation but before tax: Rs. 1,50,000, Rs. 1,40,000, Rs. 1,20,000, Rs. 1,00,000, Rs. 90,000

Depreciation is calculated at 18% on the original cost, and the tax rate is 34%.

Required:

• Compute the PBP and ARR.
• Determine the NPV and PI, with a cost of capital of 10%.
• Calculate the IRR for the project.
• Analyze the effect of a 10% reduction in annual profits on the NPV.
• Conduct a sensitivity analysis with a tax rate of 30%.