10 percent is discount rate

A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60,000, Which alternative company will select on the basis of NPV of two models? Year Model A Model B 1 1 8000 24000 N 24000 32000 3 32000 40000 4 48000 24000 5 32000 16000 6