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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:

  1. Compute the Payback Period (PBP).
  2. Calculate the Accounting Rate of Return (ARR).
  3. Determine the Net Present Value (NPV) and Profitability Index (PI) at a 9% discount rate.
  4. Calculate the Internal Rate of Return (IRR).

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