Calculate the NPV for each project using a discount rate of 8%(ignore)

If the payback period for Project A is four years and for Project B is four and a half years, which project will you recommend undertaking?

Project A is to purchase a new machine for 240,000 which will generate increased cashflow of 60,000 for each of the next five years. Project B is to purchase a new machine for 350,000 which will generate increased cashflow of 50,000 for each of the next two years and then 100,000 for each of the next four years. For both projects, the machines will be disposed of for 10,000 (not included in the cashflows above) at the end of the project