The purchase of a machine is contemplated and the relevant facts concerning two possible choices are as follows:

	Machine A	Machine B
Capital expenditure (Rs)	50000	60000
Estimated life - years	3	4
Residual value	nil	Nil
Cash flow after taxation	25000	24000

Assume a rate of interest of 10% for which the reciprocals are:

Year1-0.9091; year 2-0.8264; year 3 0.7513 and year 4- 0.6830

Calculate the (i) NPV (ii) IRR, and (iii) payback period for the two choices. Comment briefly on the results