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Related to Checkpoint 11 2) (Calculating EAC) Bary Boswell s a financial analyst for Dossnan plasma cuter shop The two alternatives, denoted A and B
Related to Checkpoint 11 2) (Calculating EAC) Bary Boswell s a financial analyst for Dossnan plasma cuter 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 wil cost only $50,000 Metal Works, Inc and he is analyzing two alternative configurations for the firm's new Moreover te to alternat es wil have very diferent cash to s ad useful i ves The aner-tax costs for the two projects are as folows a. Calculate each project's EAC, given a discount rate of 12 percent b. Which of the aternatives do you think Barry should select? Why? a, Alternative A's EAC at adscort rate of 12% ss (Rand to the nearest cent) Data Table Year Alternative B Alternative A s(50,000) 4,000) (4,000) 4.000) $(85.000) (16,000) (16,000) (16,000) (16,000) (16,000) (16 000) (16,000) Print Done
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