XYZ Corporation is evaluating two mutually exclusive projects. Both require an initial cash outlay of ₹15,000 and have a life of 4 years. The company's required rate of return is 12%, and it pays tax at 40%. The projects will be depreciated on a straight-line basis. The net cash flows (before taxes) expected to be generated by the projects and the present value (PV) factor (at 12%) are as follows:

Year	1	2	3	4
Project A (₹)	5,000	5,000	5,000	5,000
Project B (₹)	7,000	4,000	3,000	6,000
PV factor (at 12%)	0.893	0.797	0.712	0.636

Requirements:

• Compute the NPV of each project.
• Determine which project should be accepted based on NPV.
• Calculate the payback period for each project.
• Assess the profitability index for each project.