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P11-4 (similar to) Doorhon Hold Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is

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P11-4 (similar to) Doorhon Hold Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two teative configurations for the firm new placut shop. The two tomatives, denoid A and B below, will perform the same task, but afternative A will cost $75.000 to purchase, while eative will cost only $55,000. Moreover, the two atomas have very diferent cash flows and useful lives. The art costs for the two projects are as follows: a. Calculate mach project's EAC given a discount ratio of 10 percent b. Which of the normatives do you think Barry should select? Why? a. Alaalve A's EAC na discount ratio of 10% (Roond to the nearest cont.) 2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the firm Henoted A and B below, will perform the same task, but alternative A will cost $75,000 to purchase, while alternative B will cost only $55,000. Moreover, s and useful lives. The afty Data Table AC, given a discount rate do you think Barry should iscount rate of 10% is $ Year Alternative A Alternative B $(55,000) (6,500) (6,500) (6,500) 3 4 5 6 7 $(75,000) (19,000) (19,000) (19,000) (19,000) (19,000) (19,000) (19,000) Print Done answer box and then click Check Answer, Clear All Check 30,10 14

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