ABC Company is considering leasing a computer that costs Rs 1,00,000. The 4-year agreement involves Rs 23,000 as annual rental payable at the end of the year, and the annual operating expenses amount...

ABC Company is considering leasing a computer that costs Rs 1,00,000. The 4-year agreement involves Rs 23,000 as annual rental payable at the end of the year, and the annual operating expenses amount to Rs 3,000. If the company purchases the computer, straight-line depreciation is charged taking into account an estimated salvage value of Rs 20,000. The annual revenue is Rs 7,000 and the annual operating cost is Rs 3,000. Interest rate on debt is 12% and the cost of capital is 20%. Find out: (i) NAL, and (ii) IRR of the lease when tax rate is 30%.