Mu Logistics Ltd.

Scenario: Mu Logistics Ltd. is evaluating an investment in new delivery trucks costing Rs.200,000. The trucks have a life expectancy of 4 years with no salvage value. The tax rate is 28%. The company uses straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the trucks are as follows:

Year	CFBT (Rs)
1	45,000
2	50,000
3	55,000
4	60,000

Compute the following:

1. Payback period
2. Internal Rate of Return (IRR)
3. NPV at 9% discount rate
4. Profitability Index at 9% discount rate