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(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

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(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 $75,000 to purchase, while alternative B will cost only $65,000 Moreover the two alternatives will have very different cash flows and useful lives. The ater-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 Barty should select? Why? i Data Table - X Year Alternative A Alternative B 1 2. 3 4 5 $(75,000) $(65,000) (21,000) (5,000) (21,000) (5,000) (21,000) (5,000) (21,000) (21,000) (21,000) (21,000) in order to copy its contents into a spreadsheet) (Click on the icon

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