STU Ltd. is planning a cost reduction project with an initial investment of Rs. 75,00,000 and a project life of 6 years. The project is expected to generate annual cost savings as follows:

• Year 1: Rs. 10,00,000
• Year 2: Rs. 15,00,000
• Year 3: Rs. 20,00,000
• Year 4: Rs. 25,00,000
• Year 5: Rs. 30,00,000
• Year 6: Rs. 35,00,000
• The corporate tax rate is 30%, and the company uses a discount rate of 12% for such projects.

Required:

1. Compute the Net Present Value (NPV) of the project.
2. Calculate the payback period for the project.
3. Determine the Internal Rate of Return (IRR) for the project.
4. Assess the profitability index (PI) for the project.
5. Provide a recommendation on whether the project should be undertaken based on the calculated metrics.