ANADIAN DUBAI Question 25 Marks The following are two projects configurations for new shop. The two projects, denoted A and B below, will perform the same task, but alternative A will cost $160,000 to purchase, while alternative B will cost only $110,000. Moreover, the two projects will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows: Year 0 1 2 3 4 5 6 7 Project A ($) (160,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) Project B ($) (110,000) (12000) (12000) (12000) a. Calculate each project's EAC, given a 10 percent discount rate. b. Which of the two projects you should select? Why