Theta Textiles Ltd.

Scenario: Theta Textiles Ltd. is considering an investment in a new weaving machine for Rs.400,000. The machine has a life expectancy of 5 years with no salvage value. The tax rate is 26%. The company follows straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the weaving machine are as follows:

Year	CFBT (Rs)
1	80,000
2	85,000
3	90,000
4	95,000
5	100,000

Compute the following:

1. Payback period
2. Accounting Rate of Return (ARR)
3. NPV at 10% discount rate
4. Profitability Index at 10% discount rate