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 $ 60, 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:

Year	Alternative A	Alternative B
0	($90,000)	($60,000)
1	($18,000)	($4,000)
2	($18,000)	($4,000)
3	($18,000)	($4,000)
4	($18,000)
5	($18,000)
6	($18,000)
7	($18,000)

a. Calculate each project's EAC, given a discount rate of 12 percent. b. Which of the alternatives do you think Barry should select? Why?