MNO Ltd. is evaluating a renewable energy project with a project life of 15 years. The project will require an initial investment of Rs. 10 crores. Additional capital expenditure of Rs. 2 crores will be needed at the end of the fifth year.

The projected annual benefits from the project are Rs. 2 crores per year.

• The variable cost ratio is 35% of benefits, and fixed costs are Rs. 15,00,000 per year.
• The company’s tax rate is 30%, and it uses a 9% discount rate for such projects.

Required:

1. Compute the Net Present Value (NPV) of the project.
2. Calculate the Internal Rate of Return (IRR) for the project.
3. Determine the discounted payback period for the project.
4. Assess the Modified Internal Rate of Return (MIRR) for the project.
5. Recommend whether the project should be pursued based on the calculated metrics.