The cash flow diagram of Alternative-2 is shown here again for ready reference.
The equivalent future worth FW₂ (in Rs.) of Alternative-2 is determined as follows;

Fig. 2.12 Cash flow diagram of Alternative-2 for two cycles

Putting the values of different compound interest factors in the above expression for FW₂results in the following;

FW₂ = Rs.100295

Thus Alternative-1 will be selected for purchase of the compression testing machine, as it shows the higher positive equivalent future worth as compared to Alternative-2.