Cost of mach 600000

Mach life 6
Dep 100000
Lease period 6
Lease Rentals 140000
Payment Made at beginning
Tax rate 40%
Finance cost 12%
Decision Lease
Leasing Buyin
Year L.R Tax Sav on R Outflow NPV of CF Asset Cost
0 -140000 56000 -84000 -84000 -600000
1 -140000 56000 -84000 -75000 0
2 -140000 56000 -84000 -66964 0
3 -140000 56000 -84000 -59790 0
4 -140000 56000 -84000 -53384 0
5 -140000 56000 -84000 -47664 0
6 0
-386801
 Buying
Dep Tax Sav on dep Cash flow Npv of CF
-600000 -600000
100000 40000 40000 35714
100000 40000 40000 31888
100000 40000 40000 28471
100000 40000 40000 25421
100000 40000 40000 22697
100000 40000 40000 20265
-435544
Cost of mach 600000
Mach life 6
Dep 100000
Lease period 6
Lease Rentals 140000
Payment Made at beginning
Tax rate 40%
Finance cost 12%
Decision Buy
Year LR TSR NO AC DEP TSD
0 -140000 56000 -84000 -600000
1 -140000 56000 -84000 0 100000 40000
2 -140000 56000 -84000 0 100000 40000
3 -140000 56000 -84000 0 100000 40000
4 -140000 56000 -84000 0 100000 40000
5 -140000 56000 -84000 0 100000 40000
6 0 100000 40000
CF DCF IRR FC
-600000 516000
40000 -124000
40000 -124000
40000 -124000 8.30% 7.20%
40000 -124000
40000 -124000
40000 -40000
Cost of mach 600000
Mach life 6
Dep 100000
Lease period 6
Lease Rentals 140000
Payment Made at beginning
Tax rate 40%
Finance cost 12%
Decision

Year LR TSR NO AC DEP TSD

0 -140000 56000 -84000 -600000
1 -140000 56000 -84000 0 100000 40000
2 -140000 56000 -84000 0 100000 40000
3 -140000 56000 -84000 0 100000 40000
4 -140000 56000 -84000 0 100000 40000
5 -140000 56000 -84000 0 100000 40000
6 0 100000 40000
CF DCF IRR FC Loan Available Interest Principal Instalment
-600000 516000
40000 -124000 Rs. -532,070.12 Rs. -63,848.41 Rs. -85,690.95 Rs. -124,000.00
40000 -124000 Rs. -446,379.17 Rs. -53,565.50 Rs. -91,860.70 Rs. -124,000.00
40000 -124000 8.30% 7.20% Rs. -354,518.47 Rs. -42,542.22 Rs. -98,474.67 Rs. -124,000.00
40000 -124000 Rs. -256,043.80 Rs. -30,725.26 Rs. -105,564.85 Rs. -124,000.00
40000 -124000 Rs. -150,478.95 Rs. -18,057.47 Rs. -113,165.52 Rs. -124,000.00
40000 -40000 Rs. -37,313.43 Rs. -4,477.61 Rs. -37,313.43 Rs. -40,000.00
Cost of mach 600000
Mach life 6
Dep 100000
Lease period 6
Lease Rentals 134730.377996317
Payment Made at beginning
Tax rate 40%
Finance cost 12%

Year LR TSR NO AC DEP

0 -134730 53892.15 -80838.2 -600000
1 -134730 53892.15 -80838.2 0 100000
2 -134730 53892.15 -80838.2 0 100000
3 -134730 53892.15 -80838.2 0 100000
4 -134730 53892.15 -80838.2 0 100000
5 -134730 53892.15 -80838.2 0 100000
6 0 100000
TSD CF DCF IRR FC
-600000 519161.8
40000 40000 -120838
40000 40000 -120838
40000 40000 -120838 7.20% 7.20%
40000 40000 -120838
40000 40000 -120838
40000 40000 -40000
Cost of mach 600000
Mach life 6
Dep 100000
Residual 100000
Lease period 6
Lease Rentals 140000
Payment Made at beginning
Tax rate 40%
Finance cost 12%
Decision Buy
Year LR TSR NO AC DEP Residual
0 -140000 56000 -84000 -600000
1 -140000 56000 -84000 0 100000 0
2 -140000 56000 -84000 0 100000 0
3 -140000 56000 -84000 0 100000 0
4 -140000 56000 -84000 0 100000 0
5 -140000 56000 -84000 0 100000 0
6 0 100000 0
7 100000
After Tax Res TSD CF DCF IRR FC
-600000 516000
0 40000 40000 -124000
0 40000 40000 -124000
0 40000 40000 -124000 10.49% 7.20%
0 40000 40000 -124000
0 40000 40000 -124000
0 40000 40000 -40000
60000 60000 -60000
Cost 1000000 Year Depreciation
Equity Used 200000 1 14.28%
Debt Used 800000 2 24.49%
Intt on Debt 10% 3 17.49%
Term Of Debt 15 4 12.50%
Lease Period 15 5 8.92%
Lease Rentals 110000 6 8.92%
Dep schedule 8 7 8.92%
Residual 300000 8 4.48%
Tax 40%

Year Equity LR Aftax LR Intt

0 -200000
1 0 110000 66000 Rs. -80,000.00
2 0 110000 66000 Rs. -77,482.10
3 0 110000 66000 Rs. -74,712.41
4 0 110000 66000 Rs. -71,665.74
5 0 110000 66000 Rs. -68,314.42
6 0 110000 66000 Rs. -64,627.96
7 0 110000 66000 Rs. -60,572.85
8 0 110000 66000 Rs. -56,112.23
9 0 110000 66000 Rs. -51,205.55
10 0 110000 66000 Rs. -45,808.21
11 0 110000 66000 Rs. -39,871.12
12 0 110000 66000 Rs. -33,340.33
13 0 110000 66000 Rs. -26,156.47
14 0 110000 66000 Rs. -18,254.21
15 0 110000 66000 Rs. -9,561.73
16 0 0 Rs. 0.00
TSi Dep TSD Res AfTax Re Prin Instl CF
-200000
Rs. 32,000.00 142800 57120 0 0 Rs. -105,179.02 Rs. -25,179.02 49940.98
Rs. 30,992.84 244900 97960 0 0 Rs. -105,179.02 Rs. -27,696.92 89773.82
Rs. 29,884.96 174900 69960 0 0 Rs. -105,179.02 Rs. -30,466.62 60665.94
Rs. 28,666.30 125000 50000 0 0 Rs. -105,179.02 Rs. -33,513.28 39487.28
Rs. 27,325.77 89200 35680 0 0 Rs. -105,179.02 Rs. -36,864.61 23826.74
Rs. 25,851.18 89200 35680 0 0 Rs. -105,179.02 Rs. -40,551.07 22352.16
Rs. 24,229.14 89200 35680 0 0 Rs. -105,179.02 Rs. -44,606.17 20730.12
Rs. 22,444.89 44800 17920 0 0 Rs. -105,179.02 Rs. -49,066.79 1185.871
Rs. 20,482.22 0 0 0 0 Rs. -105,179.02 Rs. -53,973.47 -18696.8
Rs. 18,323.28 0 0 0 0 Rs. -105,179.02 Rs. -59,370.82 -20855.7
Rs. 15,948.45 0 0 0 0 Rs. -105,179.02 Rs. -65,307.90 -23230.6
Rs. 13,336.13 0 0 0 0 Rs. -105,179.02 Rs. -71,838.69 -25842.9
Rs. 10,462.59 0 0 0 0 Rs. -105,179.02 Rs. -79,022.56 -28716.4
Rs. 7,301.68 0 0 0 0 Rs. -105,179.02 Rs. -86,924.81 -31877.3
Rs. 3,824.69 0 0 0 0 Rs. -105,179.02 Rs. -95,617.29 -35354.3
Rs. 0.00 0 0 300000 180000 Rs. 0.00 Rs. 0.00 180000