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XYZ Ltd. is considering a proposal of installing a Machine. The equipment would involve a Cash outlay of Rs. 25,00,000. The expected life of the

XYZ Ltd. is considering a proposal of installing a Machine. The equipment would involve a Cash outlay of Rs. 25,00,000. The expected life of the project is 5 years without any salvage value. Below cashflow will be achieved by the organization:

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Discounting rate is 8% Find out the PV of Cash Inflows, NPV, and Profitability Index

\begin{tabular}{|r|r|} \hline Year & \multicolumn{2}{|c|}{ Cash Inflows } \\ \hline 1 & 600000 \\ \hline 2 & 700000 \\ \hline 3 & 750000 \\ \hline 4 & 800000 \\ \hline 5 & 725000 \\ \hline \end{tabular}

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