Two mutually exclusive alternatives are available. Project A will require initial investment of £3,000 and run for two years at a cost of £500 per annum. Project B will require initial investment of £7,000 and last for four years at a cost of £800 for the first three years and £1,000 in the fourth. Calculate the annualised cost of both projects over a four-year period, assuming that reinvestment in project A would cost £2,500 at the end of year two and assuming an interest rate of 8 per cent. Which alternative should be selected?