Sigma Retail Ltd.

Scenario: Sigma Retail Ltd. is evaluating an investment in new point-of-sale systems costing Rs.250,000. The systems have a life expectancy of 5 years with no salvage value. The tax rate is 30%. The company uses straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the systems are as follows:

Year	CFBT (Rs)
1	55,000
2	60,000
3	65,000
4	70,000
5	75,000

Compute the following:

1. Payback period
2. Internal Rate of Return (IRR)
3. NPV at 12% discount rate

Profitability Index at 12% discount rate