Calculate the Net Present Value and Profitability Index of the project.

Years 1 2 3 4 5 Net cash inflow after tax 32,50,000 32,08,000 33,20,000 33,20,000 36,70,000 Present value factor 0.847 0.718 0.609 0.516 0.437 Present value cash inflow ₹ 27,52,750 23,03,344 20,21,880 17,13,120 16,03,790 Net Present Value = Present value cash inflow - initial cash outflow = ₹27,52,750 + ₹23,03,344 + ₹20,21,880 + ₹17,13,120 + ₹16,03,790 - ₹22,50,000 = ₹81,44,884 Initial investment = ₹22,50,000 (assumed working capital invested at start of the year) Profitability Index (PI) = Sum of discounted cash inflows Initial cash outlay = ₹1,03,94,884 / ₹22,50,000 = 4.62