A machine with useful life of seven years costs ₹ 10,000 while another machine with useful life of five years costs ₹ 8000. The first machine saves labour expenses of ₹ 1900 annually and the second one saves labour expenses of ₹ 2200 annually. Determine preferred course of action. Assume cost of borrowing as 10% compounded per annum.
Given, P(7,0.1) = 4.86842 P(5,0.1) = 3.79079