DEF Inc. is evaluating a project with the following projected annual cash inflows:

• Year 1: Rs. 1,50,000
• Year 2: Rs. 1,30,000
• Year 3: Rs. 1,00,000
• Year 4: Rs. 80,000
• Year 5: Rs. 60,000

Initial investment: Rs.5,00,000 Depreciation: 25% per annum on original cost Tax rate: 35%

Tasks:

1. Determine the Payback Period (PBP) and Accounting Rate of Return (ARR).
2. Calculate the Net Present Value (NPV) and Profitability Index (PI) if the discount rate is 8%.
3. Calculate the Internal Rate of Return (IRR).