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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:

  1. NPV
  2. IRR
  3. Payback period
  4. Profitability index
Internal rate of return

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