Therefore it can be concluded that scheme 1 is better than scheme 2 and it must be acceptedHere while comparing the two schemes on the basis of the payback period. The payback period of scheme 1 is 3.4 years and the payback period of scheme 2 is 3.3 years. Hence it can be concluded that scheme 2 is to be accepted. As the scheme with a lower payback period is acceptable.Comparing on the basis of the profitability index it has been observed that scheme 2 with a profitability index of 2.13 is better than that of scheme 1 with a profitability index of 1.92. The profitability index which is also known as the benefit-cost ratio indicates that the profitability index of more than 1 is to be accepted. Here the profitability index of both the project is more than 1. But comparing the two schemes it is found that the profitability index of scheme 2 is more than that of scheme 1. Hence Scheme 2 is to be accepted.From the calculation of the above techniques of capital budgeting it is observed and concluded that scheme 1 with more Net present value, internal rate of return, and Scheme 1 with more Profitability index and payback period as compared to that of scheme 1. Hence we can conclude that Scheme 1 is to be accepted as it is for fewer years that the cash flow will generate in 5 years, whereas the cash flow for scheme 2 will generate in 6 years (Abbas, 2012).Private equity is an important alternative source of funding for industries because it provides equity securities and debt for operating in those companies which are not publicly traded. Private equity is generally and usually referred to as the private capital as private equity provides a company with a very long term investment strategy. Mezzanine capital, venture capital is all included in the private equity is an important alternative source for funding of the logistics industry (Morgan, Lewis and Bockius LLP, 2014). Private equity as well as the hedge funds are now buying the risky.