Question. 2. The XYZ Co. Ltd. is considering the purchase of a new machine. Two alternative machines (A and B) have been suggested each costing 4,50,000. Cash Flow After Tax (CFAT) are expected to be as follows: Cash Flow After Tax Year Machine A () Machine B () 1 40,000 1,20,000 2 1,20,000 1,60,000 3 1,60,000 2,00,000 4 2,40,000 1,20,000 5 1,60,000 80,000 The company has a target of return on capital of 10 percent and on this basis you are required to compare the profitability of the machines and state which alternative you consider financially perferable