There are two projects expected to be in use for 12 years and must select which is a better option. Project A is anticipated to last 12 years, but is expensive and require maintenance. Project B is cheaper and require little maintenance, but must be replaced every 4 years. The salvage value of each is roughly equal to the cost of removal. Estimate the present worth of the alternatives at 3% annual interest and recommend the best option for the 12-year life. Show your work in Excel.

Projects	A	B
Initial cost	$160000	$40,000
Annual O&M cost	$4320	$540
Salvage value	$0	$0
Life (years)	12	4