An airline company needs an aircraft. It has two options.

• Buy the aircraft for Rs 50 crore at a post-tax cost of debt of 8.5 percent. The aircraft has a life of 15 years at the end of which it can be salvaged for Rs 14 crore. Annual maintenance expenses are Rs 6 lac.

• Lease it for 15 years by paying Rs 6 crore per year.

Assume straight-line depreciation. Tax rate is 35 percent. WACC is 18.5 percent. Calculate NAL.