Sparrow Textiles Pvt Ltd plans to upgrade its manufacturing capabilities. Three machines are being evaluated, and the details are as follows. Assume all sales are cash transactions. Corporate income-tax rate is 30%. Interest on capital may be assumed to be 12%.

Particulars	Machine X (₹)	Machine Y (₹)	Machine Z (₹)
Initial investment	35,00,000	40,00,000	38,00,000
Estimated annual sales	7,00,000	6,50,000	7,50,000
Cost of production:
Direct material	60,000	55,000	70,000
Direct labour	50,000	45,000	60,000
Factory overhead	80,000	75,000	90,000
Administration cost	30,000	25,000	35,000
Selling & Distribution cost	20,000	18,000	25,000

The economic life of Machine X is 3 years while it is 4 years for the other two. The scrap values are ₹55,000, ₹45,000, and ₹50,000 respectively. You are required to determine the most profitable investment based on the payback period method.