a)Downling Sportswear is considering building a new factory to produce aluminium baseball bats.This project would require an initial cash outlay of $5,000,000 and would generate annuak net cash inflows of $1,000,000 per year for 8 years.Calculate the project's NPV using a discount rate of 9%. b)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 altermatives, denoted A and B below, will perform the same task, but alternative A will cost $95,000 to purchase ,while alternative B will cost only $60,000.Moreover, the two alternatives will have very different cash flows and usefule lives.The after tax costs for the two projects are as follows: Alternative Alternative Year 0 $(95,000) 1 $(21,000) 2 $(21,000) 3 $(21,000) 4 $(21,000) 5 $(21,000) 6 $(21,000) 7 $(21,000) $(60,000) $(4,000) $(4,000) $(4,000) i)Calculate each project's EAC at a discount rate of 10%. ii)Which of the alternatives do you think barry should select? why

a Downline Sportswear is considering building windory to probabil bat. This project would require anche day of 5.000.000 and was $1,000,000 per year for years Calculate the projects NPV using a rate of 0% Barry Bowell is a francial analyst for Dossman Mew Works, Inc. and he was analysing two weative configurations for the firm's new pina The Audio the same task, but alemave A wil.com $95.000 to purchase while atrative B wie cost only 900.000 Montorer. he wille wil have very dich row The projects are as follows: Alamative Alternative Year A B o ${95,000) $(60 000) 1 $(21.000 $14,000) 25421.000) $(4000) $(21,000) ${4,000) 4 $21.000) 5 $(21,000) 65421,000) 7 $121,000) Calodate each project's EAC at a discount rate of 10% Which of the attematives do you think Barry should select/wy