Your company needs to replace one of its manufactory machines. The correct discount rate is 10 per cent and there are 2 alternatives. First - Machine A that costs 400 and produces annual cash flow of 200 at the end of each of its six years of life. Another alternative- Machine B costs 200 and has only a two-year life. It produces 300 annual cash flow at the end of each of these two years. Which machine is preferable?

Please use excel.

Discount Rate	0.1
Year	CF(A)	CF(B)
0	-400	-200
1	200	300
2	200	300
3	200
4	200
5	200
6	200