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 $55,000. 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	$(75,000)		$(55,000)
1	(17,000)		(8,000)
2	(17,000)		(8,000)
3	(17,000)		(8,000)
4	(17,000)
5	(17,000)
6	(17,000)
7	(17,000)

a. Calculate each project's EAC, given a discount rate of 10 percent. b. Which of the alternatives do you think Barry should select? Why?