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