EXAMPLE 5.4 M/S Krishna Castings Ltd. is planning to replace its annealing furnace. It has received tenders from three different original manufacturers of annealing furnace. The details are as follows. 1 80,00,000 12 Manufacturer 2 70,00,000 12 3 90,00,000 12 Initial cost (Rs.) Life (years) Annual operation and maintenance cost (Rs.) Salvage value after 12 years 8,00,000 9,00,000 8,50,000 5,00,000 4,00,000 7,00,000 Which is the best alternative based on future worth method at i = 20%