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 $65,000. 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	$(95,000)		$(65,000)
1	(19,000)		(4,000)
2	(19,000)		(4,000)
3	(19,000)		(4,000)
4	(19,000)
5	(19,000)
6	(19,000)
7	(19,000)

a. Alternative A's EAC at a discount rate of 9% is_____(Round to the nearest cent.)

a.1 Alternative B's EAC at a discount rate of 9% 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 A should be selected because its equivalent annual cost is less per year than the annual equivalent cost for Alternative B.

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

D) This cannot be determined from the information provided.

If correct I will rate