SP Limited Company is having two projects, requiring a capital outflow of Rs. 3,00,000. The expected annual income after depreciation but before tax is as follows:Year Rs. 1 )9,000 2) 80,000 3 )70,000 4) 60,000 5) 50,000

Depreciation may be taken as 20% of original cost and taxation at 50% of net income: You are required 10 calculated (a) Pay-back period (b) Net present value (c) According rate of return (d) Net present value index. (e) Internal rate of return.