The promoters of a company are planning two different cost structures as follows: 1) Variable cost 50% of sales, Fixed Cost Rs70 lacs Or ii ) Variable Cost 60% of sales , Fixed Cost 70 lacs Projected average sales Rs. 170 lacs. They consider two alternative financing alternatives for the above : 1)Equity Rs.50 lacs and Debt Rs.60 Lacs , or (ii ) Equity Rs.30 lacs , Debt Rs.80 lacs , for the first alternative , interest rate is worked out to be 8% and for the second alternative it is 10 %. Tax Rate is 25 %.Which combination of alternatives is the best decision for investment Calculate the leverage and comment .