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($Related to Checkpoint $11\mathrm{.}2)($Calculating EAC$)$ 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:

Data table

$($Click on the icon in order to copy its contents into a spreadsheet.$)000$ to$$ purchase, while alternative B will cost only $ $50000.$Moreover$,$ the two alternatives will have very different cash flows and useful lives. The$$ after$-$tax costs for the two projects are as$$ follows:

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?