Tau Electronics Ltd.

Scenario: Tau Electronics Ltd. is considering an investment in a new assembly line costing Rs.500,000. The assembly line has a life expectancy of 7 years with no salvage value. The tax rate is 26%. The company follows straight-line depreciation. The estimated cash flows before depreciation and tax (CFBT) from the assembly line are as follows:

Year	CFBT (Rs)
1	80,000
2	85,000
3	90,000
4	95,000
5	100,000
6	105,000
7	110,000

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