Q$1.$ The ABC Corporation is considering replacing one of its bottling machines with a new, more efficient one. The old machine presently has a book value of Rs $90,000$ and could be sold for Rs $65,000.$ The old machine is being depreciated using a simplified straight$-$line method down to zero over the next five vears generating depreciation of Rs $18,000$ per year. The replacement machine would cost Rs $250,000,$ and have an expected life of five years after which it could be sold for Rs $20,000.$ Because of reductions in defects and materials savings, the new machine would produce cash benefits of Rs $1,10,000$ per year before depreciation and taxes. Assume simplified straight$-$line depreciation, a $45$ percent marginal tax rate and a required rate of return of $14$ percent, Find:

a$.$ The payback period

b$.$ The net present value and Internal rate of return.

c$.$ The profitability index.