A company is faced with the decision to purchase or acquire on lease a machine. The cost of the machine is ₹ 2,53,930. The asset can be financed by taking a loan on which interest is payable @15% and the loan will be paid in 5 equal installments inclusive of interest. The tax rate is 40%. Assume loan installment is payable at the end of each year. What will be the loan installment amount for each year?

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A company is faced with the decision to purchase or acquire on lease a machine. The cost of the machine is ₹ 2,53,930. The asset can be financed by taking a loan on which interest is payable @15% and the loan will be paid in 5 equal installments inclusive of interest. The tax rate is 40%. Assume loan installment is payable at the end of each year. What will be the loan installment amount for each year?






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