Safety drugs Ltd is a leader in the bulk drug industry. It is considering manufacture of a new bulk drug called SX-5. You have recently joined the company as a finance officer and you report to the Vice President (Finance), who coordinates the capital budgeting activity. You have been asked to develop the financials for SX-5. After discussing with marketing, technical, and other personnel, you have gathered the following information. The SX-5 project has an economic life of 5 years. It would generate a revenue of Rs.200 million in year1 which will rise by Rs.20 million per year for the following two years. Thereafter, revenues will decline by Rs.10 million per year for the remaining two years. Operating costs (costs before depreciation, interest, and taxes) will be 50 percent of revenues. Other than this, overhead costs amounting to Rs 1mn per year will be allocated to this line. SX-5 .will require an outlay of Rs.100 million in plant and machinery right in the beginning. The entire outlay will be financed by equity and term loan in the ratio 3:2. The term loan will carry an interest of 14 percent per annum and will be repayable in 4 equal annual instalments, the first instalment falling due at the end of year 2. For tax purposes, the depreciation rate will be 15 percent as per the written down value method. The net salvage value of plant and machinery after 5 years is expected to be Rs.30 million. The net working capital requirement will be Rs 50 mn. Assume that the investment in net working capital will be made right in the beginning of the project and the same will be fully financed by working capital advance carrying an interest rate of 12 percent per annum. At the end of 5 years the working capital is expected to be liquidated at par. The effective tax rate is 30 %. Estimate the cash flows of project SX -5. Ignore the tax implications on capital gains/loss, if any.