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 $$55,000.$Moreover$,$ the two alternatives will have very different cash flows and useful lives. The$$ after$-$tax costs for the two projects are as$$ follows:

Year Alternative A Alternative B

$0$ $$(90,000)$ $$(55,000)$

$1$ $$(19,000)$ $$(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$.$ Calculate each$$ project's EAC, given a discount rate of $11$ percent.

b$.$ Which of the alternatives do you think Barry should$$ select? Why?