P$\mathrm{.}25\mathrm{.}1$ XYZ Builders Ltd need to acquire the use of a crane for their construction business, and are considering buying or leasing a crane. The crane costs Rs $\backslash (10,00,000\backslash ),$ and is subject to the straight line method of depreciation to a zero salvage value at the end of $5$ years. In contrast, the lease rent is Rs $\backslash (2,20,000\backslash )$ per year to be paid in advance each year for $5$ years. XYZ Builders Ltd can raise debt at $14$ per cent payable in equal annual instalments, each instalment due at the beginning of the year. The company is in the $50$ per cent tax bracket. Should it lease or buy the crane?