0	$(90,000)		$(50,000)
1	(18,000)		(6,500)
2	(18,000)		(6,500)
3	(18,000)		(6,500)
4	(18,000)
5	(18,000)
6	(18,000)
7	(18,000)

Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the firm's new plasma cutter shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost

$90,000 to purchase, while alternative B will cost only $50,000.

Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows:

Discount rate is 10%.