con 23.
ger Paints Ltd. is considering the purchase of a machine. The machine A and E
able each costing Rs. 1,50,000. A

con 23.
ger Paints Ltd. is considering the purchase of a machine. The machine A and E
able each costing Rs. 1,50,000. A discount rate of 8% is to be used. Earning aften
are expected to be as follows:
Cash Inflows
Year
Machine A
Machine B
Rs.
RA
1
37,500
25,000
2
50,000
62,500
8
50,000
50,000
37.500
50,000
12,500
5
25,000
ate which machine would be a more profitable investment ? Discounting factor​