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STU Ltd. is considering a project with the following data: Year Cash Inflows (Rs.) 1 1,30,000 2 1,50,000 3 1,70,000 4 1,20,000 5 90,000 Initial
STU Ltd. is considering a project with the following data:
Year | Cash Inflows (Rs.) |
1 | 1,30,000 |
2 | 1,50,000 |
3 | 1,70,000 |
4 | 1,20,000 |
5 | 90,000 |
Initial investment: Rs.5,00,000 Depreciation: 25% per annum on the initial cost Tax rate: 30%
Tasks:
- Compute the Payback Period (PBP).
- Calculate the Accounting Rate of Return (ARR).
- Determine the Net Present Value (NPV) and Profitability Index (PI) at a 9% discount rate.
- Calculate the Internal Rate of Return (IRR).
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