A company wants to purchase a plant for its expanding operations. The desired plant is available at

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A company wants to purchase a plant for its expanding operations. The desired plant is available at ₹3,00,000 in cash or ₹4,50,000 to be paid in 5 equal annual instalments due at the end of each year. Assuming the required rate of return of 15 per cent, which option should the company exercise?

Ignore taxes.

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