CA CPT Model Test Paper 3 with solutions for online practice

A company is considering proposal of purchasing a machine either by making full payment of Rs. 4000 or by leasing it for four years at an annual rate of Rs. 1250. Which course of action is preferable, if the company can borrow money at 14% compounded annually : [Given : ${\left(1.14\right)}^4=1.68896$]