Q2. Alpha builders Itd. is planning to procure a mobile mixing machine that costs Rs. 12 lakh. It has an expected life of 8 years with no salvage value at the end. A leasing company has offered a lease for the machine at the rentals of Rs.2.60 lakhs annually payable in arrears. The company also has the option of getting a term loan at 13% for 8 years. The firm pays income tax at 40%. Evaluate the desirability of lease against buy option with depreciation on SLM basis