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Related to Checkpoint 11 Calculating EAC) Bany Boswell be a financial analyst for Dessman Metal Works, Inc and he is analyzing two alternative configurations for

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Related to Checkpoint 11 Calculating EAC) Bany Boswell be a financial analyst for Dessman Metal Works, Inc and he is analyzing two alternative configurations for the firm's new plasma cuttershop. The two amaties enoted and below, will perform the same ask tutatemative Awil.com S75,000 to purchase while altomative will cost only $65.000. Moreover, the two alternatives will have very different cash flows and unelul lives. The ther tax costs for the two projects are as follows. T Calculate each projects EAC, given a discount rate of 12 percent Which of the states do you think any should select Why? Atentatives EAC at a discount rate of 125 (Round to the nearest cunt) Fernatives EAC at Gincontrate of 1283 Round to the nearest cent) Which of the alternatives do you think Barry should select? Why? (Select the best choice below) A. Alternative should be selected because it has the highest NPV B. This cannot be determined from the information provided C. Alternative should be selected because equivalent annual costess per your than the annual equivalent cost for Amative A D. Alternative A should be selected its equivalent als les per year than the annualquivalent cost for AB Year Alternative A Alternative B $(65,000) (6,500) (6,500) (6,500) 0 1 2 3 4 5 6 7 $(75,000) (21,000) (21,000) (21,000) (21,000) (21,000) (21,000) (21,000)

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