(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 $85,000 to purchase, while alternative B will cost only $50.000. 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 discount rate of 9 percent. b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 9% is s (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer Clear All 2 parts remaining -) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Work figurations for the firm's new plasma cutter shop. The two alternatives, denoted A alternative A will cost $85,000 to purchase, while alternative B will cost only $50,000 Ty different cash flows and useful lives. The after-tax costs for the two projects are a EAC, given a discount rate of 9 percent. 5 do you think Barry should select? Why? (Round to the nearest cent.) a discount rate of 9% is $ - X Data Table Alternative B Year 1 WN - O Alternative A $(85,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) (18,000) $(50,000) (7,000) (7,000) (7,000) 4 5 6 7 Print Done NO Clear All 39 PM