The problem provided is asking to determine the most profitable machine based on the Net Present Value (NPV) method. Let's break down the steps:

Step-by-Step Approach:

1. Calculate NPV for both Machine A and Machine B.

   • The initial cost of the machines is ₹4,00,000 with an additional ₹30,000 of working capital needed at the end of the first year.
   • The target return (discount rate) is 10%.

2. Formula for NPV: $\text{NPV} = \sum \frac{\text{Cash Flow}_t}{(1 + r)^t} - \text{Initial Investment}$ Where:

   • $t$ is the year,
   • $r$ is the discount rate (10% or 0.10),
   • $\text{Cash Flow}_t$ is the expected cash flow in year $t$.

3. Details to keep in mind:

   • The initial investment is ₹4,00,000 for both machines.
   • Additional working capital of ₹30,000 needs to be considered in year 1.

I will now calculate the NPVs for both Machine A and Machine B using the provided cash flows and the discount rate.

Let me perform the calculation.