Paulas refrigerator has just died. She can get a basic refrigerator or a more efficient and environmentally friendly refrigerator with energy Star designation. Paula earn 4% compounded annually on her investments. She wants to consider a 10-year planning horizon, and she will use present worth analysis to determine the best alternative. What is your recommendation?

	energy star unit	basic unit
Initial cost	$850	$700
Delivery and installation	$60	$60
Professional servicing (year 5)	$100	$100
Annual energy costs	$55	$120
Salvage value	$175	$150

please include detailed set up, formulas used, and final answer.