Machine X Machine Y Cost Estimated Life Estimated salvage value Working Capital

Machine X Machine Y
Cost
Estimated Life
Estimated salvage value
Working Capital required in the beginning Rs. 56125 Rs.56125
5 years 5 years
Rs. 3000 Rs. 3000
Rs.10000 Rs. 20000 Annual income after tax and depreciation:
Year Rs. Rs.
I 3275 11375
II 5375 9375
III 7375 7375
IV 9375 5375
V 11375 3375Overhauling charges at the end of third year Rs. 25000 on machine X. Depreciation has been charged at straight line method. Discount rate is 10%? P.V.F. at 10% for five years are 0.909 0.826 0.751 0.683 and 0.621. Suggest which project should be accepted