XYZ Ltd. is considering an investment that requires an initial cash outlay of ₹45,000 and has a life of 6 years. The company’s required rate of return is 12%. The project will be depreciated on a straight-line basis. The net cash flows (before taxes) expected to be generated by the project and the present value (PV) factor (at 12%) are as follows:

Year	1	2	3	4	5	6
Cash inflow (₹)	12,000	12,000	12,000	12,000	12,000	12,000
PV factor (at 12%)	0.893	0.797	0.712	0.636	0.567	0.507

Requirements:

• Compute the NPV of the project.
• Determine the IRR.
• Calculate the payback period.
• Assess the profitability index.
• Recommend whether XYZ Ltd. should undertake the project.