# There are two alternatives for a construction firm to purchase a road roller which will be used for the construction of a highway section. The cash flow details of the alternatives are as follows; Alternative-1: Initial purchase cost = Rs.1500000, Annual operating cost = Rs.35000 starting from the end of year '2' (negligible in the first year) till the end of useful life, Annual revenue to be generated = Rs.340000 for first 4 years and then Rs.320000 afterwards till the end of useful life, Expected salvage value = Rs.430000, Useful life = 8 years. Alternative-2: Initial purchase cost = Rs.1800000, Annual operating cost = Rs.25000, Annual revenue to be generated Rs.365000, Expected salvage value = Rs.550000, Useful life = 8 years. Find out the most economical alternative on the basis of equivalent future worth at the interest rate of 9.5% per year