A machine is expected to generate cash saving (after-tax) of Rs. 50,000 per annum over a period of 5 years. Salvage value of machine is 40% of the original cost. If accounting rate of return is 20%, cost of two such machines will be
1. Rs. 78,125
2. Rs. 1,56,250
3. Rs. 3,12,500
4. Rs. 6,25,000