Prepare a statement showing evaluation of two machines as may be prepared by Rupesh to advise GNT Ltd.to buy machine.

Statement showing the evaluation of two machines: Machines A B Purchase cost (₹): (i) 1,70,000 1,15,000 Life of machines (years) 3 2 Running cost of machine per year (₹): (ii) 50,000 70,000 PVF for 1-3 years @ 10% of annuity (iii) 2.487 - PVF for 1-2 years @ 10% of annuity (iv) - 1.736 Present value of running cost of machines (₹): (v) 1,24,350 [ (ii) x (iii)] 1,21,520 [ (ii) x (iv)] Cash outflow of machines (₹): (vi) = (i) + (v) 2,94,350 2,36,520 Equivalent present value of annual cash outflow 1,18,355.45 [ (vi) ÷ (iii)] 1,36,244.24 [ (vi) ÷ (iv)] Or 1,18,355 1,36,244 Decision: GTN Ltd (Company) should buy Machine A since its equivalent cash outflow is less than Machine B.