On the basis of the following information, what will be the EBIT corresponding to financial indifference point?
Total capital outlay Rs. 60,00,000
Financing Plans
1. 100% Equity @ Rs. 10/- per share
2. Debt - equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%

A. Rs. 10,00,000

B. Rs. 12,00,000

C. Rs. 10,80,000

D. Rs. 12,80,000

Answer: Option C