The Company has 2 proposals before it for purchase of a machine Particulars Purchase cost Cash Income p.a. Savings in Material and Labour Costs p.a. Determine which proposal shalll be accepted if the company can borrow at 10% p.a. compounded annually to be repaid in 5 years. 1 (Rs) 40,00,000 7,50,000 20,000 2 (Rs) 40,00,000 7,45,000 30,000