XYZ Corporation is considering the purchase of one of two mutually exclusive machines. The company’s cost of capital is 10% and tax rate is 25%. Other information related to both machines are as follows:

Particulars	Machine A	Machine B
Cost of machine	1,200,000	1,800,000
Expected life	4 years	4 years
Annual Income (before Tax & depreciation)	500,000	700,000

Depreciation is charged on a straight-line basis. You are required to calculate: a. Discounted payback b. NPV c. Profitability index