Beta Corporation is considering investing in one of two machines Machine A or Machine B. The initial cost and net cash inflows from each project are shown below. The opportunity cost for both projects is 14% per cent.

Cash Flow	Machine A	Machine B
	$	$
Initial Cost	6 500 000	5 000 000
Net Cash Inflows
Year 1	1 000 000	1 400 000
Year 2	1 300 000	1 600 000
Year 3	1 300 000	1 600 000
Year 4	1 200 000	1 600 000
Year 5	1 200 000	1 200 000
Year 6	1,400,000	1,000,000

Discount factor table

Year	10%	12%	14%
1	0.9091	0.8929	0.8772
2	0.8264	0.7972	0.7695
3	0.7513	0.7118	0.6750
4	0.6380	0.6355	0.5921
5	0.6209	0.5674	0.5194
6	0.5645	0.5066	0.4556

Required:

a. Calculate the payback period for each machine.

b. Based on the payback method, identify the machine in which the company should invest, giving ONE reason for your choice.

c. Calculate the net present value (NPV) for Machine A and Machine B.