Alpha Tech is considering two projects, Project X and Project Y, each requiring an initial investment of INR 500,000. The expected cash inflows are as follows:

Project X:

• Year 1: INR 100,000
• Year 2: INR 150,000
• Year 3: INR 200,000
• Year 4: INR 250,000
• Year 5: INR 300,000

Project Y:

• Year 1: INR 200,000
• Year 2: INR 200,000
• Year 3: INR 200,000
• Year 4: INR 150,000
• Year 5: INR 150,000

Requirements:

1. Calculate the payback period for both projects.
2. Compute the NPV for both projects assuming a discount rate of 10%.
3. Determine the IRR for each project.
4. Calculate the ARR for each project.
5. Based on the above calculations, which project should Alpha Tech undertake? Justify your choice.