A firm has to replace the existing machine. The cost of the new machine, transport and installation are respectively Rs 10,00,000; Rs 1,00,000 and Rs 20,000. The old machine which had been procured...

A firm has to replace the existing machine. The cost of the new machine, transport and installation are respectively Rs 10,00,000; Rs 1,00,000 and Rs 20,000. The old machine which had been procured for Rs 9,70,000 is sold for Rs 80,000. The accumulated depreciation is Rs 9,00,000. The increase in net working capital amounts to Rs 1,00,000. Calculate the initial investment.