Alia company is considering the purchase of a new machine. Two alternative machines X and Y have been suggested, each having an initial cost of 800,000 SR. Earning after taxation are expected to be as follows:

Years	Cash Inflows Machine X (SR)	Cash Inflows Machine Y (SR)
1	160,000	130,000
2	180,000	260,000
3	250,000	210,000
4	220,000	190,000
5	170,000	110,000

The company has targeted of return on capital of 8% and on this basis, you are required to compare the profitability of the machines and state which alternative you consider financially preferable. The present value of 1 (one) SR at 8% is 0.926, 0.857, 0.794, 0.735, and 0.681 respectively from first to fifth year.