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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
(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 alteratives 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 12 percent. b. Which of the alternatives do you think Barry should select? Why? a. Alternative A'S EAC at a discount rate of 12% is s (Round to the nearest cent) D DU 3 of 9 (7 complete) HW Scor Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost $85, 00. Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for th . give youth Data Table - X ount Year Alternative A Alternative B 0 1 2 $(50,000) (5,000) (5,000) 3 4 $(85,000) (19,000) (19,000) (19,000) (19,000) (19,000) (19.000) (19,000) (5,000) 5 6 7 Print Done answer box and then click Check Answer Clear All Check Ansi
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