RST Inc. is choosing between two investment options. The company’s cost of capital is 12% and tax rate is 26%. Other information related to both options are as follows:

Particulars	Option 1	Option 2
Initial Cost	3,500,000	4,200,000
Expected life	5 years	5 years
Annual Income (before Tax & depreciation)	1,000,000	1,200,000

Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Profitability index