The management of Nestle Pakistan. wants to reduce its labor cost by installing a new machine. Two types of machines are available in the market Machine of Honda Co. and machine of Mitsubishi Co. Machine of Honda Co. would cost Rs.180,000 whereas machine of Mitsubishi Co. would cost Rs.150,000. Both the machines can reduce annual labor cost by Rs.30,000.

Required: Which is the best machine to purchase according to payback method?