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Question 10-Marks A company is considering an investment proposal to install new milling machine. The project will cost Rs.100,000. The facility has a life expectancy of 5 years and no salvage value. The company tax rate is 40%. Firm uses diminishing method (15%) for depreciation. The estimated earnings before tax from the proposed investment plan are as under. Year 1 2 3 4 5 Earning before tax 25,000 20,000 15,000 17,000 30,000 Compute cash flow for 5 years. Calculate: 1. Payback period 2. Profitability Index 3. IRR 4. NPV( discount rate is 16%)