Royal Corporation is considering two mutually exclusive machines that perform the same task. The two alternatives provide the following net investments and net annual cash flows:

Year	Equipment A	Equipment B
0	-$20,000	-$20,000
1	12,500	8,000
2	12,500	8,000
3	12,500	8,000
4		8,000
5		8,000
6		8,000

Assume a required rate of return of 12 percent, using equivalent annual annuity approach, which project should be selected?