Alpha Ltd is considering the purchase a new machine, the details of the machines from which it is to select one are as follows: Machine I Machine II Estimated Life 3 years 3 years Capital Cost Rs. 90,000 Rs. 90,000 Earnings (after tax) Year 1 40,000 20,000 Year 2 50,000 70,000 Year 3 40,000 50,000 The company follows the straightline method of depreciation, the estimated salvage value of both the types of machines is zero. You are to advise which is the most protable investment based on (i) Pay back period (ii) Accounting Rate of Return and (iii) Net Present Value assuming a 10% cost of capital