A company is considering an investment proposal to install new milling machine. The project will cost Rs.600,000. The facility has a life expectancy of 5 years and no salvage value. Firm uses...

A company is considering an investment proposal to install new milling machine. The project will cost Rs.600,000. The facility has a life expectancy of 5 years and no salvage value. Firm uses straight-line method for depreciation. The estimated  earning  before tax from the proposed investment plan are as under. Firm Cost of capital 10%

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Year                                                          Cash Flow

1.                                                          Rs. 220,000


2.                                                                180,000


3.                                                                140,000


4.                                                                150,000


5.                                                                250,000

Note: No need to enter currency symbol and comma just type numbers with nearest round off number and percentages (for example: 10000 or 10000.65=10001 or 10.65%=10.65)

if the answer of payback is 2 years 5.65 month so you have to type 2.6

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Simple Payback period

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Discounted payback period

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NPV