Qno 2 Exide batteries Inc is planning to expand its current production facility and is reviewing following project. (15 Marks)

Year	Cash-flow
0	-500,000
1	200,000
2	50,000
3	35,000
4	280,000

WACC for the Project is 8%.

You as financial Analyst required to prepare a report on project Feasibility.

Requirements

1. Calculate payback of the project also state advantages and disadvantages of this method.
2. Calculate discounted payback of the project also state advantages and disadvantages of this method.
3. Calculate NPV of the project. Should we take this project or not? Also state advantages and disadvantages of this method.
4. Calculate IRR of the project also state advantages and disadvantages of this method.