Question

On 1 April 2024, a company enters into a 3-year lease for machinery with annual lease payments of ₹5,00,000, payable at the end of each year. The incremental borrowing rate is 8% p.a. Calculate the present value of lease liability at inception.

A ₹13,86,000
B ₹12,50,000
C ₹12,30,000
D ₹14,00,000
E ₹11,90,000
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