Homework: Chapter 11 Homework Part 1 of 3 Question 3 Score: 0 of 1 point Save (Related to Checkpoint 11.2) (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 $85,000 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: a. Calculate each project's EAC, given a discount rate of 8 percent. b. Which of the alternatives do you think Barry should select? Why? . a. Alternative A'S EAC at a discount rate of 8% is $ (Round to the nearest cent.) Data Table Year Alternative A Alternative B 0 1 $(85,000) $(65,000) (17,000) (6,500) 2 (17,000) (6,500) 3 (17,000) (6,500) (17,000) 5 (17,000) 6 (17,000) 7 (17,000) (Click on the icon in order to copy its contents into a spreadsheet.) 4 Print Done