CA CPT Model Test Paper 10 with solutions for online practice

Earnings from a new machine after taxes (cost savings or profits) are expected to be Rs. 34,000 per year. The machine costs Rs. 1,50,000 and after 5 years, it has no resale value. A loan can be made for this amount payable in five equal annual instalments at 5% p.a. on the unpaid balance of the loan. Should management buy the machine?