A company is considering purchase a machine. Two machines, each costing Rs.1,20,000 are available. Earning after taxation, but before charging depreciation are Cash Flows Year Machine A Machine B 36,000 24,000 54.000 48.000 1 2 3 60.000 72.000 4 45.000 54,000 5 30,000 42.000 Evaluate the two altematives according to (a) The Pay back Method (b) Retum or Investment Method - Average Annual Earnings on Average Investments A company is considering purchase a machine. Two machines, each costing Rs.1,20,000 are available. Earning after taxation, but before charging depreciation are Cash Flows Year Machine A Machine B 36,000 24,000 54.000 48.000 1 2 3 60.000 72.000 4 45.000 54,000 5 30,000 42.000 Evaluate the two altematives according to (a) The Pay back Method (b) Retum or Investment Method - Average Annual Earnings on Average Investments