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(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

(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 $95,000 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: HE

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

a. Alternative A's EAC at a discount rate of 10% is $____.

(Round to the nearest cent.)

Please help me answer all parts, thanks!

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(Related to Checkpoint 11.2) (Calculating EAC) Barry Boswol is a financial analyst for Dossman Metal Works, Inc, and ho is analyzing two altarnative configuratione for the fimis new flasma eulter shop. The two altematives, denoted A and B below, will perform the same task, but allemative A will cost 595,000 to purchase, while allemative B will cost only 555 , 000 . Moreover, the two ahtarnatives will have vory difforent cavi fiows and useful fives. The affer-tax costs for the two projects are as follows: a. Calculate oach project's EAC, given a ditcount rate of 10 percent. b. Which of the attornatives do you think Barry should select? Why? a. Altemative A's EAC at a discount rate of 10% is $ (Round to tha nearest cent) Data table

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