T Ltd. is looking for a capital project in order to replace its existing old machine. It got two proposals to consider; details of which are given…

T Ltd. is looking for a capital project in order to replace its existing old machine. It got two proposals to consider; details of which are given below: Proposal X Proposal Y Initial investment 6,50,000 7,80,000 Estimated useful life 5 Years 3 Years Annual cash inflows 1,90,000 3,50,000 Cost of capital 10% 10% Year 1 2 3 4 5 PVIF 0.10, t 0.909 0.826 0.751 0.683 0.621 PVIFA 0.10, t 0.909 1.736 2.487 3.170 3.791 What will be Equivalent Annual NPV for Proposal X and Proposal Y?