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 alternatives, 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) $(21,000) 5 $(21,000) 6 $(21,000) 7 $(21,000) $(60,000) $(4,000) $(4,000) $(4,000) 4. i)Calculate each project's EAC at a discount rate of 10%. ii)Which of the alternatives do you think Barry should slect?why?

y bebas. There was 1.000.000 dinara nocna perto Pig Banyuwanderung voor mense Theme w perform the same but AwO000 W 000 Mhe wyr Fative Amative A B OSS 000 50.000 2.000 54.000 2521 0001 514000 3521.000 5 000 4210001 5521 000 05/21.000) 75/21.000) Calculate each projects EAC at a discount rate of 10% Which of the automaties do you think Barry should why