Example-2 Alternative-1: Initial purchase cost = Rs.300000, Annual operating and maintenance cost = Rs.20000, Expected salvage value = Rs.125000, Useful life = 5 years. Alternative-2: Initial purchase cost = Rs.200000, Annual operating and maintenance cost = Rs.35000, Expected salvage value =Rs.70000, Useful life = 5 years. The annual revenue to be generated from production of concrete (by concrete mixer) from Alternative-1 and Alternative-2 are Rs.50000 and Rs.45000 respectively. Compute the equivalent present worth of the alternatives at the same rate of interest as in Example- 1 i.e. 10% per year and find out the economical alternative