blackboard.com Prakash Iron Works is considering the purchase of a machine. Two machines A.. and B are available each costing Rs.1,50,000. Earnings after taxation but before charging depreciation are expected to be as under: Year Machine A Machine B 1 45,000 15.000 2 60.000 45.000 3 90.000 60.000 4 30,000 90.000 5 30.000 60.000 Evaluate the two alternatives according to (a)Payback period Method (b) Return on investment Method (C) Net Present Value Method (cost of capital 10%) (Note: Years 1 2 3 4 5 Present Value of Rs at 109.909 826.757 689 6211 Lost saved 12:06 24 PM