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YZC Ltd. is evaluating a project with the following cash inflows: Year Cash Inflows (Rs.) 1 1,60,000 2 1,40,000 3 1,20,000 4 1,00,000 5 80,000

YZC Ltd. is evaluating a project with the following cash inflows:

Year

Cash Inflows (Rs.)

1

1,60,000

2

1,40,000

3

1,20,000

4

1,00,000

5

80,000

Initial investment: Rs.4,00,000 Depreciation: 20% per annum on the initial investment Tax rate: 35%

Tasks:

  1. Calculate the Payback Period (PBP).
  2. Determine the Accounting Rate of Return (ARR).
  3. Compute the Net Present Value (NPV) and Profitability Index (PI) with a discount rate of 11%.
  4. Calculate the Internal Rate of Return (IRR).

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