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Year Earnings (Rs. in lakhs) 1 180 2 190 3 200 4 210 5 220 Initial investment: Rs. 600 lakhs Depreciation: 20% on a Written
Year | Earnings (Rs. in lakhs) |
1 | 180 |
2 | 190 |
3 | 200 |
4 | 210 |
5 | 220 |
- Initial investment: Rs. 600 lakhs
- Depreciation: 20% on a Written Down Value basis
- Scrap value at the end of five years: 50%
- Cost of raising capital: 11%
- Income tax rate: 25%
Calculate:
- NPV
- IRR
- Payback period
- Profitability index
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