Synergy Ltd. is considering a capital project about which the following information is available: The investment outlay on the project will be Rs 100 million. This consists of Rs 80 million on the plant and machinery and Rs 20 million on net working capital. The entire outlay will be incurred at the beginning of the project. The life of the project is expected to be 5 years. At the end of 5 years, fixed assets will fetch a net salvage value of Rs 30 million, whereas net working capital will be liquidated at its book value. The project is expected to increase the revenues of the firm by Rs 120 million per year for first two years and Rs.130 million per year for years 3,4 and 5. The increase in costs on account of the project is expected to be Rs 80 million per year in first two years and Rs.86 million for years 3, 4 and 5. (This includes all items of costs other than depreciation, interest and tax). The effective tax rate will be 30 %. Plant and machinery will be depreciated at the rate of 25 % per year as per the written down value method and its cost of capital for this project is 10%.You are required to find out: (a) The projects initial net cash outlay. (b) Calculate the projects operating cash flow over its 5 years life(c) Evaluate the project using NPV method. (15 marks)