5.A co. Ltd is considering the purchase of a new Mach machine. Two alternatives (A and B) have been suggested, each having an initial cost of $ 4,00,000 and requiring $ 10,000 as additional working capital at the beginning of 1 year. Earning after taxations to be as follows. Profitability Statement of Machines of A and B Year Discount Factor at 10% Cash inflow for Mach. "A" Present Value Cash inflow for Mach "B" Present Value Mach "B" Mach "A" 1 .909 40000 36360 120000 109080 2 .826 120000 99120 160000 132160 3 .751 160000 120160 200000 150200 st 4 .683 240000 163920 120000 81960 5 .621 160000 99360 80000 49680 The cash flows of last year include the initial working capital. The company has a target of return on capital of 10% and on this basis, you are required to compare the profitability of the machines and state which alternatives you consider financially preferable.