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 $75,000 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:

Year	A	B
0	$(75,000)	(50,000)
1	(16,000)	(6,500)
2	(16,000)	(6,500)
3	(16,000)	(6,500)
4	(16,000)
5	(16,000)
6	(16,000)
7	(16,000)

a. Alternative A's EAC at a discount rate of 11% is $ _______(Round to the nearest cent.)

Alternative B's EAC at a discount rate of 11% is $ _______(Round to the nearest cent.)

b. Which of the alternatives do you think Barry should select? Why?(Select the best choice below.)

A. Alternative B should be selected because it has the highest NPV.

B. Alternative B should be selected because its equivalent annual cost is less per year than the annual equivalent cost for Alternative A

C. This cannot be determined from the information provided.

D. Alternative A should be selected because its equivalent annual cost is less per year than the annual equivalent cost for Alternative B