The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly instalments. If a company purchases machine on hire purchase basis, the amount of capital expenditure will be

A

Rs. 1,20,000

B

Rs. 1,35,000

C

Rs. 1,50,000

D

Rs. 1,60,000