Beginning LOAN PAYMENT SCHEDULE 800 658.08 507.6448 348.183488 179.

1544973

Instalment 189.92 189.92 189.92 189.92 189.92

Principal

Interest End 141.92 48 658.08 150.4352 39.4848 507.6448 159.461312 30.45869 348.1835 169.0289907 20.89101 179.1545 179.1707302 10.74927 0

Lease Tax After Tax Lease LEASE COST

1 237.4 113.952 123.448 Rs. 467.97 1 189.92 -21.6 -90 78.32 Rs. 316.33 200 Rs. 516.33

2 237.4 113.952 123.448

3 237.4 113.952 123.448

4 237.4 113.952 123.448

5 237.4 113.952 123.448

INSTALMENT TAX ADVTG ON INT. TAX ADVTG ON DEP. NET CF

2 189.92 -17.76816 -90 82.15184

3 4 5 189.92 189.92 189.92 -13.7064096 -9.40095 -4.83717 -90 -90 -90 86.2135904 90.51905 95.08283

Kd 3.3

Ke 11

K 14.3

to be checked

cost of mc revenue op expense dep. after tax cf add dep net cf npv

0 -6000

1 4000 -1000 -1800 1200 840 1800 2640

2 4000 -1000 -1800 1200 840 1800 2640

3 4000 -1000 -1800 1200 840 600 1800 3240

-6000 Rs. 7,016.08 1016.07814 leasing 1

2 4000 -2500 -800 700 490

3 4000 -2500 -800 700 490

revenue lease payment op expense after tax cf net cf

4000 -2500 -800 700 490 Rs. 1,176.90

490 1.12 1 437.5 490

490 1.2544 1.12 390.625 437.5 490 1.404928 1.2544 348.7723 390.625

NAL Beneits from Leasing Benefits Investment cost Tax shield on lease payment NPV Tax shield on operating cost NPV op cost under buy NPV Sum NPV Cost of Leasing lease rentals NPV dep shield NPV salvage NPV pv of tax shiels operating cost under buy NPV op cost NPV Sum( 2500 $6,004.58 540 $1,342.90 600 $545.45 300 $746.06 800 $1,921.47 $10,560.45 800 800 300 300 540 540 2500 2500 (revenue cancels from both side) 0 6000 $1,801.37 240 $576.44 1000 $2,486.85 10865 1000 1000 240 240 1 750 2 750 3 750

Net advantage

304.211543511095

Operating 0 Net Operating cash Lease Payment Net Profit Tax Profit after tax NPV Buy Total loan amount Loan Payment schedule Beginning Instalment Principal Interest End 15000 3750 2550 1200 12450 12450 3771 2775 996 9675 9675 3749 2975 774 6700 6700 3736 3200 536 3500 3500 3780 3500 280 0 0 Net operating cash Depreciation Interest Salvage profit PBT Tax PAT Depreciation addback Principal repaid final sum NPV 1 5000 3000 1200 800 320 480 3000 2550 930 $3,386.82 2 5000 3000 996 1004 401.6 602.4 3000 2775 827.4 3 5000 3000 774 1226 490.4 735.6 3000 2975 760.6 4 5000 3000 536 1464 585.6 878.4 3000 3200 678.4 5 5000 3000 280 2100 3820 1528 2292 3000 3500 1792 1 5000 4200 800 320 480 2 5000 4200 800 320 480 3 5000 4200 800 320 480 4 5000 4200 800 320 480 5 5000 4200 800 320 480

$1,688.27

6750

LOAN PAYMENT SCHEDULE

1200

15000

5000