s a result of her due diligence, Alex finds that the letterbox business may actually be more attractive in the long-run. She now considers the option to start a larger letterbox firm (Project B) and retire it at the end of 2026 subject to the following cash flows (all figures in thousand SH),

project b 2022 2023 2024 2025 2026

periods 0 1 2 3 4

cash flow - 1250 200 360 520 700

The interest rate remains at 6% and there is again no residual value. Use the annual annuities of project A and B to decide which the better investment is.

required

Please calculate the annuity for Project a and project B. Round your answer to 4 decimal places.

and

which one is better