YearEarnings (Rs. in lakhs)
1150
2160
3170
4180
5190
•Initial investment: Rs. 700 lakhs
•Depreciation: 12% on a Written Down Value basis
•Scrap value at the end of five years: 25%
•Cost of raising capital: 11%
•Income tax rate: 20%
Calculate:
1.NPV
2.IRR
3.Payback period
4.Profitability index
5.Accounting rate of return