A material testing laboratory has two alternatives for purchasing a compression testing machine which will be used for determining the compressive strength of different construction materials. The alternatives are from two different manufacturing companies. The cash flow details of the alternatives are as follows; Alternative-1: Initial purchase price = Rs.1000000, Annual operating cost = Rs.10000, Expected annual income to be generated from testing of different construction materials = Rs.175000, Expected salvage value = Rs.200000, Useful life = 10 years. Alternative-2: Initial purchase price = Rs.700000, Annual operating cost = Rs.15000, Expected annual income to be generated from testing of different construction materials = Rs.165000, Expected salvage value = Rs.250000, Useful life = 5 years. Using present worth method, find out the most economical alternative at the interest rate of 10% per year