Que. 3. You are working for the Indian Has researched and developed a gadget called waste guzzler. This gadget is an outcome of rk of your R&D department at a cost of Rs. 400 crore. The gao ste solid liquid produced daily by a city with a population of 20 lac residents. The project requires a initial capital investment of Rs. 800 which can be depreciated at 25% WDV. The life of the project is five years and the revenues. costs and planned capex is as follows: Revenue 42101 5891 896 1274 Cost of Goods Sold Cother than depreciation) 72 538 765 Other costs 35 194 Capex 250 300 POO 100 The project needs working capital of Rs. 200 initially. Subsequently, the working capital requirement shall be to the extent of 20% of the revenues. Implementing this project shall release the requirement of 50 square acres of land which is currently used as a dumping ground. The company plans to develop a Infopark on this land which could be leased to carn Rs. 100 crore annually. Given that the company expects a rate of return of 16%, evaluate the viability of this project following NPV and MIRR. The company is liable to pay 30 taxes