Basic Point Inc. is planning to modernise its production facilities. The company is considering of either (1) a book press with a useful life of six years or (2) an offset printer, which has a useful life of three years. The time lines presented in the following two figures show the cash flows for both of these mutually exclusive projects. Expected cash flows (in pounds) for Book Press: 0 1 2 3 4 5 6 -20,000 4,000 7,000 6,500 6,000 5,500 5,000 Expected cash flows (in pounds) for Offset Printer Project: 0 1 2 3 -10,000 3,500 6,500 6,000 Evaluate these projects using both the replacement chain and equivalent annual benefit approaches, assuming whichever process is chosen will be repeated indefinitely.