A pharmaceutical company is planning to invest Rs. 800 lakhs in developing a new drug. The project is projected to yield the following earnings before depreciation and taxes over the next six years:

Year	Earnings (Rs. in lakhs)
1	200
2	220
3	240
4	260
5	280
6	300

The cost of capital is 12%, and the development costs will be depreciated on a straight-line basis over the project's life. The scrap value of the equipment at the end of six years is estimated to be Rs. 40 lakhs. Assume no income tax.

Requirements:

1. Calculate the net present value (NPV) of the project.
2. Determine the internal rate of return (IRR) of the project.
3. Compute the payback period.
4. Evaluate the profitability index of the project.
5. Advise whether the company should proceed with the development based on the NPV and IRR.