$3.$ a$)$ The Chirta Company produces industrial machines, which have five$-$ year lives. Chitra is willing to either sell the machines for Rs $30,000$ or lease them at a rental that, because of competitive factors, yields an after$-$tax return to Chitra of $6$ percent $$ its cost of capital. What is the company's competitive lease$-$rental rate? $($Assume straight$-$line depreciation, zero salvage value, and an effective corporate tax rate of $40$ percent.$)$

b$)$ The Sohan Machine Shop is contemplating the purchase of a machine exactly like those rented by Chitra. The machine will produce net benefits of Rs $10,000$ per year. Sohan can buy the machine for Rs $30,000$ or rent it from Chitra at the competitive lease$-$rental rate. Sohan's cost of capital is $12$ percent, its cost of debt $10$ percent, and T $=40$ percent. Which alternative is better for Sohan?

c$)$ If Chitra's cost of capital is $9$ percent and competition exists among lessors, solve for the new equilibrium rental rate. Will Sohan's decision be altered?