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Question: Mahesh Enterprises is considering of purchasing a CNC Machine. The following are the earnings after tax from the two alternative proposals under consideration each costing Rs. 8, 00,000. Select the better one, if the company wishes to operate at 10% rate of return.

Year 1	Year 2	Year 3	Year 4	Year 5
Proposal I	80000	240000	320000	480000	320000
Proposal II	240000	320000	400000	240000	160000
Present value of Re @ 10%	0.909	0.826	0.751	0.683	0.620

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