VWX Corp. is considering a project with an initial investment of Rs. 3,00,000. The project is expected to last for 4 years, generating the following annual profits before tax and after depreciation:

• Year 1: Rs. 1,20,000
• Year 2: Rs. 1,10,000
• Year 3: Rs. 1,00,000
• Year 4: Rs. 90,000

The project will be depreciated on a straight-line basis over its life. The company's tax rate is 25%, and the cost of capital is 10%.

Required:

• Determine the PBP and ARR.
• Calculate the NPV and IRR.
• Evaluate the profitability index.
• Analyze the effect of a 5% increase in the initial investment on NPV.
• Conduct a sensitivity analysis with changes in the cost of capital by ±2%.