Please provide the PV and EAC for both alternatives A and B.

Problem 11-4 (Calculating EAC) (Related to Checkpoint 11.2) 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 $80,000 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: a. Calculate each project's EAC, given a 10 percent discount rate. b. Which of the alternatives do you think Barry should select? Why? Year 0 1 Alternative B ($55,000) $6,000 $6,000 $6,000 2 3 Alternative A ($80,000) 20,000 20,000 20,000 20,000 20,000 20,000 20,000 10% 4 5 6 7 Discount rate Solution Alternative A $389,473.51 ($758,973.68) PV Alternative B $18,986.85 ($37,000.00) EAC Solution Alternative A Alternative B PV =PV[C18,7,SUM(C10:c17),0,1 =C22/PV(C18,7,0,1) |- PV[C18,7,0,SUM(D10:017)) =D22/PV[C18,7,0,1) EAC